From: David Floyd 
Newsgroups: uk.finance
Subject: Re: Self Employed Late Payments January
Date: Thu, 26 Jan 2006 16:40:39 +0000

In message of Thu, 26 Jan 2006, Ronald Raygun writes

>It doesn't seem right because it would encourage slovenliness:  "If I'm
>going to be fined for paying late, I might as well file late, it won't
>cost me any more."

You've got that wrong.

There is only a penalty if you file your Return late. And it's £100 (or 
the amount of tax payable is less than £100).

If you've filed your TR in time then there's no penalty.

If you pay your tax late then interest is charged at 6.5%pa on a daily 
basis. If there is still tax unpaid on 28th February then there is a 
surcharge of 5% of the amount then owing.

However if you are late in filing AND paying, and let's say your tax 
bill is £52, then you owe £52 plus interest from 1/2/06 on that until 
paid, and you also own a fine of £52 (being less than £100) on which 
there is no interest.

DF