A £100 fine is due for submission of a self assessment tax return after the 31st January deadline, and a further £100 six months later if the return is still not filed. However you cannot be fined more than the tax you owe (although that will change soon) and so some taxpayers do not bother about the fine. But if you think that is all, think again. One of the little known consequences of submitting a late return is that the enquiry window for an investigation into your return is extended from the anniversary of the due filing date (for the 2006/2007 return that is 31st January 2009) to  a year after the quarter date following the receipt of your tax return. Quarter dates are 31 January, 30 April, 31 July and 31 October. And late returns are more likely to be subject to an enquiry. The disruption and expense of dealing with an enquiry can be very significant - even if HMRC find nothing wrong with your affairs. Submitting tax returns late is not to be advised ... and it can prove to be a very expensive mistake.

 

You can find the HMRC guidelines at http://www.hmrc.gov.uk/leaflets/cop11.htm#g. HFM can help you prepare and file your return for a fixed fee and, if necessary, deal with any enquiry you are caught in.