Tax Return Penalties for Contractors

25 April 2012

If you are a contractor working through your own personal services limited company or employed through an umbrella company then it is important that if you missed the 31st January deadline for submitting your tax return (online) that you submit by the end of April.

For missing the January deadline contractors will have already been issued with a £100 late penalty.

But from 1st May daily penalties of £10 per day will start accruing in addition to the £100 existing penalty. This is up to to maximum additional fine of £900.

The next penalty is for 6 months late and is a fine of £300 or 5% of the tax due, whichever is the higher. This is as well as the penalties above.

For 12 months late it is an additional £300  or 5% of the tax due, whichever is the higher. In serious cases you may be asked to pay up to 100% of the tax due instead. These are as well as the penalties above.

PayMatters Contractor Tax 0800 121 6513.