Penalties for late filing of tax return

@kerrymzw said:
I came across a question in BPP Practice & Revision Kit Pg 12 Q37:

Answer within the book shows a late filing penalty of 10% for more than 6 months, but it also included a “fixed penalty of 200 pound”.

I did not find this in both BPP textbook nor the OpenTuition notes, can anyone tell me where this rule can be found?

I checked the question and it refers to a company. Now, for companies, the tax administration in terms of fines and penalties is almost the same with slight differences when compared to individuals.

I am using the study kit from Kaplan and the answer to your question is on page 803, on the Tax Administration for Companies.

I am not sure which study kit you are using but the general rule is:

– within 3 months of the filing date, there is a fixed penalty of £100

– if you are late more than 3 months after the filing date (i.e. 8 months as in the question on the BPP revision kit), the penalty is increased to £200

In addition, the company is late more than 6 months of filing its tax return and for late filings between 6-12 months, there is an ADDITIONAL 10% penalty imposed. This will give you 32624 x 10% (£3262) + £200 penalty (hence, £3462).

You can find the relevant fees and penalties for companies on the gov.uk website I have included below, but I would recommend not to follow it for more complicated matters such as Pensions as it tends to get very technical and it might confuse you.

https://www.gov.uk/company-tax-returns/penalties-for-late-filing