InvestAcc - The Retirement Planning Experts

Beware new tax penalties

Sat, 9 April 2011 14:52:29 GMT

A subtle change in the self assessment tax penalty regime may have expensive consequences for Small Self Administered Pension Schemes. From April 2011 if a SA970 tax return is requested and not filed on time then an automatic penalty of £100 will be charged in addition to an automatic daily £10 penalty until the return is filed, REGARDLESS OF WHETHER ANY TAX IS DUE OR NOT. Previousily the maximum penalty was £100 or the tax due whichever was the LESSER, in most pension scheme cases no tax was due and therefore no penalty arose. The maximum penalty rules are now 5% of the tax due or £300 whichever is the GREATER. We would urge any trustees who received a self assessment return request to give this their immediate attention to avoid unnecessary penalties.