It’s a theme that seems to come up a couple of times a year at the moment but it’s one that is always worth revisiting – the cost of getting things wrong.

A large number of contractors, freelancers and small businesses have turned to online accountancy software packages in order to keep business costs down. As long as you are experienced and confident that this can be fine but it can also prove to be a false economy.

HMRC recently issued a reminder about the fines and penalties faced by companies for things such as the late return of Self Assessment forms and late payments.

The changes come into effect this year and the costs can really mount up.

The new penalties for late Self Assessment returns are:

• An initial £100 fixed penalty, which will now apply even if there is no tax to pay, or if the tax due is paid on time;
• After 3 months, additional daily penalties of £10 per day, up to a maximum of £900;
• After 6 months, a further penalty of 5% of the tax due or £300, whichever is greater; and
• After 12 months, another 5% or £300 charge, whichever is greater. In serious cases, the penalty after 12 months can be up to 100% of the tax due.

New penalties for paying late are 5% of the tax unpaid at:

• 30 days;
• 6 months; and
• 12 months.

Interest will also be charged on top of these penalties.

The tax return deadlines remain unchanged – 31 October for paper and 31 January for online returns. The deadline for paying any tax due also remains the same at 31 January.

Further information on the new penalties is available from the HMRC website.

So if you are doing it yourself make sure these dates are firmly etched on your brain and seek professional advice if you are worried about anything.

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