January 31st Tax Return Deadline – Have You Prepared Your Self Assessment Tax Return Yet?
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Last year was possibly one of the most challenging years for small businesses with numerous obstacles to overcome, such as the credit crunch and the collapse of the financial sector. Another major consideration for small companies has been the completion of Self Assessment tax returns, which have been the focus of a government overhaul. All partnerships or self-employed individuals must complete a Self Assessment tax return. Other taxpayers who have more complicated tax affairs e.g. company directors, or income from several sources (Buy-to-Let Landlords) are also usually issued with a Self Assessment tax return. Only taxpayers who have relatively straightforward tax affairs and pay tax through the PAYE system are excluded. By completing a tax return, HM Revenue and Customs (HMRC) can calculate how much tax and national insurance you owe, and depending on your circumstances can establish if you are due a refund. Alternatively, businesses can enlist the services of a reputable accountant to do this for them. |
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Whilst Self Assessment tax returns are generally posted out in April, completing them can be a time consuming activity if you have not done one before, or are unsure of how the process works. Using a good accountant will give you the best possible chance of saving as much tax as possible.
What's more, HMRC has opted to make a raft of changes to the Self Assessment tax return system, including the introduction of two individual deadlines - one for paper tax returns, and one for online tax returns.
The former fell on October 31st, whilst the latter, 31st of January, is fast approaching meaning that time is running out for those businesses or self-employed individuals who have not yet completed their Self Assessment tax return.
Despite HMRC's enthusiasm in demonstrating the simplicity of the online system, the department has stressed that it will penalise those businesses, including sole traders and partnerships, which are not punctual in submitting their Self Assessment tax returns by the deadline.
For any tax returns which arrive after the January 31st deadline, HMRC will issue a £100 penalty. In addition to that, they may also charge daily interest on the owed amount, depending on your circumstances.
However, when it comes to genuine, mitigating circumstances, HMRC is willing to show some leniency. If you believe you or your business has been fined unfairly - or given an award which you deem to be insufficient - you are given the chance to appeal.
According to HMRC, "You must appeal in writing, generally within 30 days of receiving the notice or award with which you disagree".
Notices sent out for late Self Assessment tax return penalties will generally be accompanied by an appeal form, or if not, you also have the choice of contesting a decision with a written letter.
How we can help
If you would like us to complete your tax return for you then please call us today 0845 0176961 or fill out our contact form and we will call you back.
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