Within the Chief Ministers 2022 budget address, reference was made to the tax penalty regime being reviewed with the aim of implementing stricter but fairer sanctions which are commensurate with the size of the defaulter and the level of frequency of the default.
An amendment to the Income Tax Act 2022 was enacted on 7 July 2022. Prior to this, penalties for late filing of returns were:
- £50 upon non-submission within the nine-month period;
- A further £300 upon non-submission after three months beginning with the filing date on which the return should have been filed; and
- A further £500 upon non-submission after six months beginning with the filing date on which the return should have been filed.
As from 1 July 2023 the penalties will be increased as follows:
Micro and small sized entities
- £100 upon non-submission of the return within the nine-month period following on the Company’s year-end;
- A further £450 upon non-submission after three months beginning with the filing date on which the return should have been filed; and
- A further £750 upon non-submission after six months beginning with the filing date on which the return should have been filed.
Medium sized entities
- £750 upon non-submission of the return within the nine-month period following on the Company’s year-end;
- A further £1,250 upon non-submission after three months beginning with the filing date on which the return should have been filed; and
- A further £2,000 upon non-submission after six months beginning with the filing date on which the return should have been filed.
Large sized entities
- £1,500 upon non-submission of the return within the nine-month period following on the Company’s year-end;
- A further £3,500 upon non-submission after three months beginning with the filing date on which the return should have been filed; and
- A further £5,000 upon non-submission after six months beginning with the filing date on which the return should have been filed.
Contact
For any queries or clarification please contact your usual BDO contact or alternatively, you can contact our tax director / manager:
Christian Summerfield Stephanie Montegriffo
Director Manager
+350 200 47300 +350 200 47300
Christian.Summerfield@bdo.gi Stephanie.Montegriffo@bdo.gi
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