Anyone yet to submit their self-assessment tax return for the 2016-17 tax year are being urged to do so as soon as possible to prevent £10 daily penalties accumulating in their personal tax accounts.
Individuals who submitted their 2016-17 self-assessment tax return online prior to the 31st January 2018 deadline avoided the immediate £100 late filing penalty. However, those who did not will also be subject to pay daily charges worth £10 for tax returns more than three months late.
The Low Incomes Tax Reform Group (LITRG) has issued a statement to raise awareness of the upcoming 1st May 2018 deadline where additional daily penalties will begin for overdue 2016-17 tax returns.
The £10 daily charges will be chargeable for a 90-day period, unless taxpayers submit their outstanding tax returns during this window.
HM Revenue and Customs (HMRC) estimates almost three-quarters-of-a-million (745,588) UK taxpayers missed the 31st January 2018 deadline for 2016-17 self-assessment returns.
Robin Williamson, technical director, LITRG, issued a stark warning of the likely additional charges owed by taxpayers with overdue tax returns: “If a tax return for 2016-17 has still not been filed by 31st July 2018, the initial penalty of £100 and the daily penalties chargeable will amount to a total of £1,000, in addition to which a further penalty of at least £300 becomes chargeable.
“These automatic penalties take no account of the amount of tax an individual owes – even if you owe nothing or are owed tax back.”
What if you no longer meet the self-assessment criteria?
If you are still registered for self-assessment but your personal circumstances have changed as such that you no longer meet the self-assessment criteria e.g. your taxes are paid fully via the Pay As You Earn (PAYE) system through your new employer, you must notify HMRC of this immediately.
Providing HMRC is satisfied, they will agree to cancel the requirement for tax returns, abating any late filing penalties in the process.
If you’re keen to get your tax affairs in order for 2016-17 and avoid additional penalties from HMRC, don’t delay in contacting your local TaxAssist Accountant. Our friendly and thorough small business accountants can complete your tax return, calculate liabilities, submit it online and liaise with you on amounts due - all for a fixed, competitive price.