Fine warning over late tax returns

People who have yet to submit their tax returns have again been warned that failure to do so by the end of January could land them in financial hot water.

Speaking to the BBC, private client services director at Deloitte Patricia Monk said that those who miss the January 31st deadline will incur substantial penalties from HM Revenue & Customs (HMRC).

The sum total of these fines is likely to exceed the standard £100 penalty for late returns, she explained, because HMRC can also charge interest on overdue tax and additional surcharges of up to ten per cent.

Warning that such expenses tend to mount up "alarmingly quickly", Ms Monk noted that another £100 fine is payable if returns are still not filed by July 31st.

She added: "The [HMRC] also have the power to estimate the tax due from errant taxpayers and issue demands accordingly, and over recent years it seems that they are increasingly likely to do so."

For the sake of convenience and because tax calculations can be done automatically, HMRC is encouraging small businesses and individuals to submit their self assessment tax returns online this year.

TaxAssist Accountants focus their accountancy and tax skills specifically on small businesses and taxpayers in the UK.