One-in-four small businesses miss the tax return deadline
26th January 2017 | News
A quarter of UK small business owners have failed previously to submit their self-assessment tax returns online, according to new research from Informi.
Almost a third (31%) of survey respondents stated they missed the deadline because they were unaware of how to submit their tax return correctly. Meanwhile, more than a quarter (27%) admitted they had no idea they needed to submit a tax return.
In 2016, HM Revenue & Customs (HMRC) announced that 870,000 self-assessment taxpayers missed the 31st January deadline for online self-assessment tax returns, earning the UK Government an additional £87m in late filing penalties.
The new data from Informi states that the average fine for small business owners who missed the 31st January deadline was £284.56, with 13% of these paying penalties of more than £500.
Darren Nicholls, Product Manager at Informi, said: “Small business owners and their employees need to act quickly to take action on their tax returns before the month is out, saving their business potentially costly penalties.
“Missing the deadline isn’t the end of the world, but will trigger an automatic £100 fine which will rise by £10 a day after three months.
“With many small businesses struggling to keep their heads above water, it’s an unnecessary waste of money to boost HMRC’s coffers, and small businesses should do everything in their power to comply with the deadline.”
If you’re self-employed or a small business owner, your local TaxAssist Accountant can work with you to accurately calculate your tax liabilities, prepare and submit your tax return to HMRC with minimal hassle; allowing you to concentrate firmly on the running of your business.
If you’d like to minimise your risk of an HMRC investigation into your tax affairs, talk to your local TaxAssist Accountant today on 0800 0523 555 or drop us a line using our online enquiry form.