Chiefs’ warning over fines for late return of tax forms

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TAX chiefs have issued a reminder about new penalties for late completion of self-assessment tax returns.

Every year, around 131,000 people in Edinburgh, the Lothians and Borders file a self-assessment return.

The deadlines remain unchanged – October 31 for paper and January 31 for online returns – but new penalties which come into effect this autumn will see an initial £100 fixed penalty, which will now apply even if there is no tax to pay, or if the tax due is paid on time.

After three months, there is an additional penalty of £10 per day, up to a maximum of £900; after six months, a further penalty of five per cent of the tax due or £300, whichever is greater; and after 12 months, another five per cent or £300 charge.

Interest will also be charged on top of these penalties.

The changes will affect self-assessment returns for 2010-11, and all future financial years.