If payment or filing deadlines are missed, HMRC & Companies House issue penalties and charge interest if payments are overdue. To make matters worse penalties aren’t even tax deductible expenses.
Company accounts
For late filing of accounts Companies House penalties start at £150 when accounts are 1 day late increasing to £1,500 if accounts are delivered over 6 months late.
PAYE
Late filing of RTI submissions result in automatic HMRC penalties of £100 per late submission. With a submission generally required for each tax month, these penalties can become significant.
VAT
HMRC introduced a new penalty system for VAT, affecting returns with a period starting on or after 1st January 2023. For each VAT return submitted late, HMRC will issue your company with a penalty point which is added to your account. Once you’re at the penalty point threshold of four, you will receive a £200 penalty. You’ll also receive a further £200 penalty for each subsequent late submission while you’re at the threshold.
You will also receive penalties if you pay your VAT bill late – for more information on the rates applicable please see HMRC’s guidance.
Corporation Tax
If a Corporation Tax return is filed late the HMRC penalties increase the later the return becomes. The automatic penalty starts at £100 that starts to increase after 3 months.
Self Assessment
The automatic HMRC penalty for filing a Self Assessment Tax Return late is £100. This starts to increase after a return becomes 3 months late. These penalties can be complicated as they also charge interest.
At inniAccounts we work hard to ensure your accounts and returns are filed on time. To ensure that filing deadlines are not missed it is important that you provide the information we request as soon as possible.