Budget 2009 update - Dec 2009
The measures which were announced in the 2008 pre-budget report to help businesses and individuals spread their tax liabilities will be extended to a more formal arrangement of managed payment plans. H.M. Revenue and Customs will need to change their accounting systems to accommodate this, so it is unlikely to happen before April 2011.
H.M. Revenue and Customs will be able to collect small debts from all taxes through the coding within the Pay as You Earn System in future years.
Penalties are to be aligned across the different taxes to target taxpayers who do not submit returns or pay liabilities on time. To be introduced in stages from April 2010, as follows:
| Annual Returns | |
| After filing date due | £100 |
| Over 3 months late | £10 per day for a maximum of 90 days |
| Over 6 months late | 5% of tax due |
| 12 months late | additional 5% of tax due |
| Over 12 months late | 70%-100% of tax due |
| Frequent Returns e.g. CIS | |
| Immediately after due filing date | £100 |
| Over 3 months late | additional £200 |
| Over 6 months late | 5% of deductions due |
| 12 months late | additional 5% of deductions due |
| Over 12 months late | 70%-100% of tax due |
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