This week promises to be the busiest of the year for HM Revenue & Customs (HMRC) as many thousands of small business owners and individuals submit their online self-assessment tax returns for the 2015-16 financial year ahead of the 31st January deadline.
With just one week remaining, taxpayers who have yet to file their tax returns online are encouraged to do as soon as possible in order to avoid an immediate £100 late filing penalty and any further HMRC fines.
Last year, 9.24 million of the 10.4 million tax returns submitted were filed online, demonstrating the growing trend for handling tax affairs with HMRC electronically.
However, although HMRC’s online tax return filing system can help calculate your top-line tax liabilities, it cannot determine whether those figures are accurate and whether you have claimed your complete entitlement in terms of tax reliefs, expenses and allowances.
As such, it is very important that you get professional advice on your personal tax affairs ahead of next week’s deadline.
Your local TaxAssist Accountant can sit down with you to analyse your self-assessment tax return to see if any potential tax savings can be made before it is submitted to the tax authority.
By enlisting the services of your nearest TaxAssist Accountant, you can minimise the risk the threat of an HMRC investigation into your personal or business finances.
List of penalties for late self-assessment tax return
If you submit your 2015/16 tax return more than three months’ late, you will be subjected to the following late filing penalties:
More than 3 months late
Taxpayers receive additional fines of £10 for each following day it is late, up to a 90-day maximum of £900. This is liable in addition to the initial £100 late filing penalty.
More than 6 months late
Taxpayers will receive an immediate fine of £300 or 5% of the tax due – whichever is greater. This is liable in addition to the previous penalties.
More than 12 months late
Taxpayers will be hit with another £300 fine or 5% of the tax due – whichever is greater. This is liable in addition to the previous penalties.
In summary, that’s late filing penalties of at least £1,600 if you fail to submit your 2015/16 tax return in the next 12 months – regardless of whether you’ve already paid the tax you owe.
To avoid these unnecessary penalties get in touch today on 0800 0523 555 or drop us a line directly using our online contact form.