New Self Assessment penalties for late tax returns and payments come into force this autumn.
Business owners who fi le their returns after the official deadline (31 October for paper and 31 January for online returns) will be liable for an initial £100 fixed-rate penalty, which will apply even if there is no tax to pay.
Anyone who submits their form three months after the deadline faces additional daily penalties of £10 per day, up to a maximum of £900.
Meanwhile, businesses that file their returns six months late could be charged five per cent of the tax due or £300, whichever is greater.
And after 12 months another fi ve per cent or £300 charge will be payable, while in serious cases the penalty after one year could be up to 100 per cent of the tax due.