HMRC Penalties 2012

HMRC Penalties 2012 are severe. Your personal self-assessment tax return for the tax year to 5 April 2012 must be submitted to HMRC by 31 January 2013, or by 31 October 2012 if it is submitted in paper form. These deadlines also apply to your separate partnership tax return where you are a member of a partnership.

For tax returns for earlier

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years you would receive a penalty of £100 if you submitted it later than those dates, but that penalty would be reduced to nil if you were due a tax repayment, or all the tax due was paid by 31 January. There was however no reduction for penalties relating to late partnership returns. For 2010/11 tax returns and later years, the penalties for submitting the return late will not be reduced even if all the tax due has been paid on time.

As well as the initial £100 penalty, there are additional penalties!

If you are…

– More than three months late submitting your return the penalty is charged on a daily basis at £10 per day, up to a maximum of £900.

– Over 6 months late with your tax return you will be hit with an additional penalty calculated as the higher of: £300 and 5% of the tax due.

– Over 12 months late, the same penalty is imposed again.

When a partnership tax return is submitted late those penalties apply to each partner in the partnership.

If you are also late in paying the correct amount of tax you will receive a penalty for paying the tax late. These penalties are calculated as 5% of the outstanding tax due at the following intervals: 30 days late, 6 months late, and 12 months late.

In view of these high penalties it is essential that we work with you to get your tax bill calculated in good time, so you can make the correct payments due and get your return done on time. Please send us the information to

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complete your accounts and tax return as soon as possible!

If you are currently subject to HMRC penalties please get in touch with us and we will provide you with the best

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advice to stop the penalties increasing


HMRC Debt Collection

This supposed letter from the Inland Revenue (HMRC) has been doing the rounds for many years, however it still manages to make me smile, if you have never read it before enjoy!

Dear Mr Addison, I am writing to you to express our thanks for your more-than-prompt reply to our latest communication, and also to answer some of the points you raise.

I will address them, as ever, in order.

Firstly, I must take issue with your description of our last as a “begging letter”. It might perhaps more properly be referred to as a “tax demand”. This is how we, at the Inland Revenue, have always, for reasons of accuracy, traditionally referred to such documents.

Secondly, your frustration at our adding to the “endless stream of crapulent whining and panhandling vomited daily through the letterbox on to the doormat” has been noted. However, whilst I have naturally not seen the other letters to which you refer, I would cautiously suggest that their being from “pauper councils, Lombardy pirate banking houses and pissant gas-mongerers” might indicate that your decision to “file them next to the toilet in case of emergencies” is at best a little ill-advised.

In common with my own organisation, it is unlikely that the senders of these letters do see you as a “lackwit bumpkin” or,

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come to that, a “sodding charity”. More likely they see you as a citizen of Great Britain, with a responsibility to contribute to the upkeep of the nation as a whole.

Which brings me to my next point. Whilst there may be some spirit of truth in your assertion that the taxes you pay “go to shore up the canker-blighted, toppling folly that is the Public Services”, a moment’s rudimentary calculation ought to disabuse you of the notion that the government in any way expects you to “stump up for the whole damned party” yourself. The estimates you provide for the Chancellor’s disbursement of the funds levied by taxation, whilst colourful, are, in fairness, a little off the mark. Less than you seem to imagine is spent on “junkets for Bunterish lickspittles” and “dancing whores”, whilst far more than you have accounted for is allocated to, for example, “that box-ticking facade of a university system”.

A couple of technical points arising from direct queries: 1. The reason we don’t simply write “Muggins” on the envelope has to do with the vagaries of the postal system; 2. You can rest assured that “sucking the very marrows of those with nothing else to give” has never been considered as a practice because even if the Personal Allowance didn’t render

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I trust this has helped. In the meantime, whilst I would not in any way wish to influence your decision one way or the

other, I ought to point out that even if you did choose to “give the whole foul jamboree up and go and live in India” you would still owe us the money. Please forward it by Friday. Yours sincerely, H J Lee, Customer Relations.

If you wish to avoid the wrath of HMRC, let PGA Self Assessment deal with your personal tax affairs. 01666 822256