Consequences of late tax payments

I am newly self-employed and have been rather unorganised this year. I just managed to get my 2012/13 tax return filed online on 31st January 2014, but I didn’t have enough cash put aside to settle my tax bill. What are the implications of late payment?

1st February 2014

You will have interest to pay on anything you owe until HM Revenue & Customs (HMRC) receives your payment). 

Furthermore, after a delay of 30 days, late payment penalties at 5% of the tax you owe will begin to apply. Additional late payment penalties will be added if the delay exceeds 6 months.

Please note, if you also registered for self assessment late (i.e. after 5th October 2013), you may also incur a Failue to Notify penalty. This will be 5% of any tax outstanding on 31st January 2014.

Your local TaxAssist Accountant would be happy to assist you with your affairs, from helping with the day-to-day bookkeeping, to completion of your accounts and tax return. We’ll also ensure that you’re claiming everything you’re entitled to and obtaining as much tax relief as possible.  Please call us free to find out more.

By Jo Nockels

Disclaimer: Advice shared in this blog is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this forum, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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