Tax return deadline looms into view

Date: 19th October 2011

With the October 31st deadline for filing paper tax returns now in view a number of small businesses could be tempted to seek the advice of a specialist accountancy service.

HM Revenue & Customs (HMRC) has issued a reminder to taxpayers that time is running out and those who miss the cut-off are likely to receive a penalty.

Tax returns must reach HMRC by midnight on deadline day or taxpayers will be handed a fine of at least £100.

HMRC's rules state that this automatic penalty will be issued even if the return is just one day late or there is no tax to pay.

"The longer you delay, the more you'll have to pay. If your tax return is three months late, you'll have to pay a penalty for each additional day it is late. If it is six months late, you'll have to pay a further penalty and another final penalty if it is 12 months late," it said.

"Together these could add up to a penalty of £1,600 or more. So make sure you get your tax return in on time. Remember, if you've missed the paper tax return deadline, don’t send a paper tax return, send it online."

Posted by Jacob Williams