• Virtual FP

HMRC rack up the penalties

Here at Virtual FD we believe in doing what we can to make sure you keep as much of your hard-earned income as possible - why else would you engage us?!

So, when we hear that HMRC's £100 late filing penalty has not proved enough of a deterrent and they have introduced a new one, we feel it's our duty to do what we can to make sure you avoid having to pay it.

From October 2011 four penalties will apply:

• From day one: you will be charged a £100 penalty even if you have no tax to pay or you have paid any tax due.
• From 3 months late: you will be charged an automatic daily penalty of £10 per day up to a £900 maximum.
• From 6 months late: you will be charged additional penalties which are the greater of 5% of tax due or £300.
• Over 12 months late: again additional penalties based on greater of 5% of tax due or £300. In serious cases this penalty may be increased up to 100% of tax due.

You just need to take a look at your last tax bill to work out how much this could end up costing you!

Although these new penalties will not apply until after 31 January 2012, we believe in filing things like this in plenty of time. Therefore, from April 2011 we will be making the request for you to bring your records in by the end of April of each tax year. We will of course give you gently reminders throughout the year.

If you find record keeping a challenge (you are not alone!), then we offer a range of solutions to make your life easier. These include several FREE Excel-based systems, low monthly subscriptions online accounting services and even outsourcing your whole accounting function to us.

We can think of much more enjoyable things for you to spend your hard-earned money on, so let us help you keep more of it out of the Tax man's clutches and in your pocket! Call us on 0113 322 0006, email us at freedom@virtualfd.co.uk, Skype us at Virtual FD, send us a direct message on Twitter: @VirtualFinance, or Contact Us here.