Late filing of returns

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Ravima

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there is a penalty for late filing, but how is penalty calculated if a loss is made?
 
I believe that the surcharge is calculated as a percentage of the tax due. If there is no tax due (because of a loss) then there should be no surcharge. There are other penalties such as an increased chance of an audit.
 
thanks. nothing to fear from audit. purely laziness that all not yet in order. will be working over weekend to sort out.
 
Joe1234 said:
I believe that the surcharge is calculated as a percentage of the tax due. If there is no tax due (because of a loss) then there should be no surcharge. There are other penalties such as an increased chance of an audit.
Click to expand...

Not necessarily true - my annual corporation tax return was allegedly 1 day late last month. Even though the tax had been paid, they charged 5% of the total bill for the year because the paperwork return was late.
Needless to say I kicked up and had the express post receipt. They credited me last week.

Beware
 
Just to clarify, the surcharge will be a percentage of your liability, not the balance due. 5% if less than 2 months late, otherwise 10%
 
jasconius said:
Not necessarily true - my annual corporation tax return was allegedly 1 day late last month. Even though the tax had been paid, they charged 5% of the total bill for the year because the paperwork return was late.
Needless to say I kicked up and had the express post receipt. They credited me last week.

Beware
Click to expand...

Glad to hear you got credited. If a return is late then the penalty is a percentage of the tax due (tax due = tax liability). If there is no tax due, ie no liability, then a percentage of zero is still zero.
 
Aidan 2232 said:
Just to clarify, the surcharge will be a percentage of your liability, not the balance due. 5% if less than 2 months late, otherwise 10%
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Correct. Another point for ROS filers to note, the 2 month deadline begins on 1st November, even though the extended date for ROS users is 16 November. In effect then, for someone filing by ROS, the 5% surcharge only applies on returns received between 17th November and 31st December.
 
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