Make sure you don't get caught out by changes that HMRC has made to
penalties for late tax returns. As usual, there are fines for tardy
returns – for the financial year to 5 April 2011, paper returns should be filed by 31 October this year, and online returns by 31 January 2012.

However, in previous years there has been no penalty to pay on a late
return if no tax was outstanding or if any tax payable had been paid in full. That is has now changed. The new penalties are shown below:

1 day late: £100 – even if you have no tax to pay or have paid the tax you owe.

3 months late: £10 a day to a maximum of £900 – as well as the
fixed penalty above.

6 months late: £300 or 5% of the tax due, whichever is the higher –
as well as the penalties above.

12 months late: £300 or 5% of the tax due, whichever is the higher –
as well as the penalties above. In serious cases it may be up to 100%
of the tax due.

You have been warned!!