In this month’s article Stephen Collier Tax Director at Horsfield & Smith Chartered Accountants & Business Advisors looks at new H M Revenue & Customs Task Forces.

The first task force will focus on the restaurant trade, initially targeting businesses in London. Scotland and the North West will be the next areas targeted.

H M Revenue & Customs appear to be getting serious about chasing tax evasion, this is the first of ten task forces that will target specific industries.  H M Revenue & Customs is planning a further nine task forces in 2011/2012, with more to follow in 2012/2013.

Even if businesses are not evading tax simply sending in returns late or paying tax late now attract serious penalties. 

For example:


Income tax self assessment
Standard penalties for filing late:

One day late        £100

Three months late    £10 per day up to a maximum of £900

Six months late    Further penalties calculated on the greater of 5% of tax due or £300

Standard penalties for paying late:

Thirty days late    5% of the unpaid tax due at that date

Six months late    A further 5% penalty of the tax that remains unpaid at the date

Twelve months late    A further 5% of the tax that remains unpaid at the date

Corporation tax self assessment

First and second late returns – up to 3 months late            £100

Third consecutive late return – up to 3 months late            £500   

First and second late returns – 3 – 6 months late            £200

Third consecutive late returns – 3- 6 months late            £1,000

Returns more than 6 months late       10% of tax outstanding

Returns more than 12 months late      20% of tax outstanding


PAYE, NIC and CIS tax

 There is a penalty regime under which late payment of PAYE, NIC and related liabilities during the tax year will attract a penalty.  The first late payment in the tax year is not liable to penalties but subsequent late payments attract a penalty base on the total number of late payments in the tax year.


Number of defaults        Penalty %

1                                    0
2,3,4                              1%
5,6,7                              2%
8,9,10                            3%
11 or more                      4%

Tax is due by 19th of the following month or 22nd if paid electronically.  Small employers may use the quarterly payment scheme.

For more information Stephen can be contacted on 0161 761 5231 or email stephenc@horsfield-smith.co.uk.  Professional advice should always be sought as individual circumstances may differ.

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