The due payment date for any balance of tax for the year 2013/14 of 31st January 2015 has now passed, so interest is already accruing on any amounts due.
Any balance of tax due for the year 2013/14 must be paid by 2nd March 2015 (midnight) otherwise there will be an automatic 5% surcharge penalty, as well as interest.
In addition to this, tax remaining unpaid, will incur further 5% surcharges penalties at 31st July 2015 and 31st January 2016.
Where 2013/14 tax remains unpaid at 31 January 2016, this will incur a maximum of 15% surcharge penalties as well as late payment interest on the tax due and the surcharge itself.
The late payment penalty will not however apply to liabilities covered by a ‘time to pay’ arrangement so it may be beneficial to urgently contact HMRC to put this in place if you cannot meet your 2013/14 tax liabilities at present.
2013/14 Late Tax Return Filing Penalties
Be aware that the penalties for late filing of Tax Returns can now be substantial.
a) Tax Return filed after 31st January 2015 – initial penalty £100.
b) Tax Return filed after 30th April 2015, additional penalty of £10 per day for up to 90 days of £900 (max).
c) Tax Return filed after 30th July 2015, additional penalty of £300 or 5% of tax due, whichever is greater.
d) Tax Return filed after 30th January 2016, additional penalty of £300 or 5% of tax, whichever is greater. In more serious cases, HMRC can ask for up to 100% of the tax due instead.
In a relatively short period, penalties can accrue to over £1,000, irrespective of whether any tax is due. If there is a large amount of tax to pay, the penalties may be even greater.