HMRC Self Assessment

Have you missed the 31 January self-assement tax return deadline? Following this date, if you fail to submit your online self -assessment tax return, you will be required to pay an initial fixed penalty of £100 which increases with further delay as well as late payment interest.

 

You are required to complete a self-assessment tax return if you:

  • Have become a UK company director
  • Receive income from land and property in the UK
  • Receive annual income from a trust or settlement
  • Your employment income is going to exceed £100,000
  • You have been receiving untaxed income that cannot be collected through your PAYE code
  • Have capital gains tax to pay

Missed Deadline:

If you do not pay the tax you owe for the previous tax year on time, the more you delay, the more you will be required to pay. This is why it is imperative that you pay the tax as soon as you can. The information below details the penalties you will have to pay if your tax return is late. If a Partnership tax return is late, then each partner will be required to pay the penalties shown below.

 

Penalties for missing the tax return deadline:

  • 1 day late: A penalty of £100 which will apply even if you have no tax to pay or have already paid the tax you owe.
  • 3 months late: £10 for each following day - up to a 90 day maximum of £900. This is in addition to the fixed penalty above.
  • 6 months late: £300 or 5% of the tax due, whichever is the higher. This is in addition to the penalties above.
  • 12 months late: £300 or 5% of the tax due, whichever is the higher.

In extremely severe cases, you may be requested to pay up to 100% of the tax due instead in addition to the penalties above.

 

Interest & Penalties:

If you do not pay the tax you owe for the previous tax year on time, the more you delay, the more you will be required to pay.

 

Penalties for paying late:

  • 30 days late: 5% of the tax you owe at that date.
  • 6 months late: 5% of the tax you owe at that date including the 5% above.
  • 12 months late: 5% of the tax unpaid at that date including the two 5% penalties above.

The penalties above do not apply to any payments on account that you pay late. Until HMRC receive your payment, you will be charged interest on anything you owe and have not paid, including any unpaid penalties. More information can be found online at https://www.gov.uk/topic/personal-tax/self-assessment

 

We can help you:

If you require assistance with your personal self-assessment tax return, please book a free initial consultation now  through our Contact Us page, or alternatively please call 07715563212.

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