This article summarises the main tax late filing and payment penalties. In addition, you should be aware there are penalties for providing incorrect information.

As a small business owner you will have to deal with a number of different departments within HMRC. Each department has different forms to complete with different deadlines and different penalties should either your submission or payment be late. The following is a quick guide as to what you need to be aware of when dealing with HMRC and which deadlines you should put in your diary.

P11D forms are required if you provide benefits to employees. Some examples include a company car, fuel, private medical insurance, beneficial loans and accommodation. The P11D also give a breakdown of the expenses provided to each employee. The P11D(b) declares the Class 1A National Insurance payable by the employer.

Late Filing

Forms P11D and P11D(b) should be filed by the 6th of July following the tax year. The penalties are similar to those issued for late filing of the Employer Annual Return. A penalty of £100 is issued per month or part month the return is late, for every 50 employees.

Late Payment

Class 1A NICs need to be paid to HMRC by the 22nd of July if paying electronically, or by the 19th of July if paying by cheque.

The same penalties and interest rates apply to Class 1A National Insurance as to that under PAYE.