Missing tax return deadline could cost businesses dear

Date: 9th December 2010

Britons needing to file their online self-assessment tax returns by the end of next month could be encouraged to seek the advice of a specialist tax accountancy service in order to avoid punitive action.

As well as being issued with an automatic £100 penalty, those who miss the deadline also face the prospect of surcharges on the amount of tax owed.

The deadline for online filing, the only option left for those who missed the October paper filing cut off, will pass on January 31st next year.

On its website, HM Revenue & Customs (HMRC) warns: "If HMRC receives your tax return after the filing deadline, you'll be charged an automatic £100 penalty.

"If you pay your tax late HMRC will charge interest from the date the tax was due until your payment is received and If you still haven't paid your balancing payment by February 28th you may be charged a five per cent additional charge, called a surcharge, on top of the amount you still owe. This is in addition to any interest you've been asked to pay."

A further five per cent surcharge will then be added if a tax debt is not settled by July 31st, the department warned.

Posted by Emma Clarke