With the excitement of Christmas and the dawn of another year upon us it can be easy to forget the approaching deadline for online Self-Assessment tax returns.
If you don’t file your online tax return ahead of the Self-Assessment deadline, HM Revenue and Customs (HMRC) will issue you with penalties.
The deadline for online Self-Assessment returns is 31st January 2014. There are very few exceptions to the deadline. For example, the deadline may be later if HMRC sends you the letter telling you to complete a tax return after 31st October 2013. In this case, the letter will include the date of your own deadline – usually three months from the date of the letter.
It may also be an earlier deadline of 30th December 2013 if you want HMRC to collect any tax you owe through your tax code. You can ask for this to be paid through PAYE providing you owe less than £3,000. Be sure to display this clearly on your tax return.
Note: HMRC will try to collect the tax due through your tax code, but they cannot always do so.
Tax return deadline penalties
1 day late
A penalty of £100. This applies even if you have no tax to pay or have paid the tax you owe.
3 months late
£10 for each following day – up to a 90 day maximum of £900. This is as well as the fixed penalty above.
6 months late
£300 or 5% of the tax due, whichever is the higher. This is as well as the penalties above.
12 months late
£300 or 5% of the tax due, whichever is the higher. In the most serious cases you may be asked to pay up to 100% of the tax due instead. In some cases the penalties can be even higher than this (including the penalties above).
For more information on your Self-Assessment tax position you can contact our friendly team of TaxAssist Accountants for a free initial consultation on 0800 0523 555 or visit HMRC’s guide to understanding and checking your tax calculation.