May Day! Late return

I have had a lot going on and I still haven’t got round to submitting my 2014/15 tax return. What consequences should I be bracing myself for? 

1st May 2016

Late Filing Penalties

You should already have received an automatic filing penalty of £100. But from 1st May, daily penalties of £10 will start to apply in addition to the initial £100 penalty. They will be capped at £900 but further penalties will start to apply if the delay reaches 6 months.

Interest

Interest on the late payment of any tax liability will also be accruing. The current rate of interest charged by HMRC can be found on their website. 

Late payment penalties

Late payment penalties are raised where the tax is unpaid for 30 days after the due date. A second penalty is created where the tax is unpaid 30 days and 5 months after the due date. Further penalties arise for persistent delays.

The penalties are charged at 5% of the amount of tax unpaid. 

If you’d like any assistance, please contact us and we can get you in touch with your local TaxAssist Accountant. They can get your affairs up-to-date and explore if there are grounds to appeal against any penalties too. 

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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