Small businesses miss tax return deadlines

Date: 3rd June 2011

A number of the UK's small businesses are landing in trouble for missing important tax return deadlines.

That is according to Clydesdale and Yorkshire Banks, which said 19 per cent of UK small businesses have missed out on various tax breaks and grants.

Around ten per cent of enterprises have missed VAT payments or tax return deadlines, which could leave them facing a penalty charge from HM Revenue & Customs.

Under new increased penalties, business could face fines of up to £1,300 for missing vital deadlines.

Gary Lumby, director of small business banking at the banks, commented: "For small businesses, every penny really does count, so the cost of falling foul of red tape can make a fundamental difference to their ability to succeed.

"In extreme cases, not understanding red tape could lead to them closing. It is worrying that a significant number of small firms do not know where to turn for advice on these matters and we hope to change that for our customers."

A number of business owners could now be tempted to seek the assistance of a tax accountancy specialist in order to avoid missing deadlines and paying penalties during the current tough economic times.

Posted by Jacob Williams