HMRC has announced that the 2010/11 forms P11D, that are due for submission by 5 July, cannot be posted/delivered to your local office. Instead all paper forms have to be sent to a dedicated post room at:

HMRC NIC&EO
P11D Support Team
Tynemouth House
Room BP8019
Benton Park View
Longbenton
Newcastle Upon Tyne
NE98 1ZZ

You will need to make sure forms are completed and posted to arrive in Newcastle by the submission deadline. Penalties are likely to be charged on late returns.

Cathy Corns is a tax adviser and a partner at Mercer & Hole. The views given in this blog are personal to the author, if you would like to discuss the contents of this post with Cathy you can call her on 01908 605552.

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Buried in one of the consultative documents that accompanied the Pre-Budget Report are proposals to charge penalties of up to 200% in respect of offshore bank accounts. This is a clear message from the Government that those with undisclosed tax liabilities should consider taking advantage of either the New Disclosure Opportunity or the Liechtenstein Disclosure Facility.

Consideration to a disclosure must be given to this now as one of the deadlines for telling HMRC that you intend making a disclosure is 4 January 2010. Further details can be found here.

Barry Hallam is a senior manager at Mercer & Hole. If you would like to discuss the contents of this post with Barry you can call him on 020 7353 1597.

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One of the many consultation documents that accompanied today’s Pre Budget report has indicated that HM Revenue & Customs would like to reform the penalty regime for the late submission of Self Assessment tax returns. Currently the £100 fine for filing a tax return late can be mitigated by paying sufficient tax by the due date. HMRC see this regime as largely ineffective.

The Revenue want to separate the obligation to submit a tax return from the obligation to pay the tax. One proposal is that there should be a fixed penalty arising the day after the filing date followed by daily penalties for continued delay (after three months). If the return remains outstanding there would a further penalty linked to the amount of tax due (up to 100%!).

Separately, the Revenue would be able to charge the usual interest for paying the tax late but also penal interest set at a percentage of the tax outstanding one, six and twelve months after the due date.

Expect changes in the 2009 Budget.
 

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Please find below a blog which you might find of interest from my colleague Cathy Corns, who writes for our sister blog SME Plus...

HMRC has published new guidance on the new penalty provisions that will apply from April 2008.

HMRC states that it has designed the new penalties so that:

• If people take reasonable care when completing their returns they will not be penalised.
• If they do not take reasonable care errors will be penalised, and the penalties will be higher if the error is deliberate.
• Disclosing errors before HMRC find them will substantially reduce any penalty due.

The new penalties initially apply to VAT, PAYE, National Insurance, Capital Gains Tax, Income Tax, Corporation Tax and the Construction Industry Scheme.

Further information can be found at:
http://www.hmrc.gov.uk/about/new-penalties/penalties-leaflet.pdf
http://www.hmrc.gov.uk/about/new-penalties/faqs.htm

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