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PENALTIES
Basics
The penalty regime covers income tax, corporation tax, VAT and IHT.
There are also penalties to cover the noti"cation of starting a business and the "ling of returns and accounts at Companies
House.
Planning
Miss the "rst income tax return "ling deadline and the next day you are liable for a £100 "ne. Leave it for another 3 months
and the maximum penalty rises by £10 a day up to a maximum of £900. After 6 months a further £300 or 5% of the tax due,
whichever is the higher, is added. In some serious cases the penalty can be even higher than this.
HMRC charges late "ling penalties for PAYE, VAT and corporation tax while at Companies House penalty rates range from
£150 for a private company "ling the accounts not more than 1 month late up to £7,500 for a public company "ling
accounts more than 6 months late.
Ensure that you know all of your "ling and payment requirements and the due date for payment.
Business Taxes, Allowances and Reliefs
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