Fear not… it isn’t quite the 31st
January today, but it is fast approaching.
The month of January is always the busiest season for personal tax advisers to get all the tax returns for their clients prepared and filed in time to avoid the immediate late filing penalty. Not only this, but you will (or may) see HMRC’s increased number of adverts which gently remind you that if you need to file a return, you need to do so asap!
When to file your tax return
Although taxpayers have from 6 April each year to file their self-assessment tax returns, many individuals tend to leave this to the last minute (this could be due to other commitments as well as this not being a top priority for them). Even so, it is still a requirement if you meet one of the many criteria to do so.
Even though it has been reported that over 10,000 returns filed online to HMRC on Christmas Day and Boxing Day alone, there will still be many more outstanding out of the total of 11.4 million individuals file self assessment tax returns
However, even though a large proportion of the UK population who will need to prepare a tax return will do so in good time, many will end up missing the 31st
January deadline and as a consequence, suffer the late filing penalty regime that is in place.
Penalty fees for late tax return fees
HMRC operate a penalty system as follows:
Therefore, even if you have no tax liability to pay, you could face a penalty of £1,300 for not filing a return which is rather significant.
- Filed up to 3 months late - £100
- Filed up to 6 months late – Daily £10 a day for up to 90 days penalty (max £900)
- Filed later than 6 months after due date - £300 or 5% of the tax still due at this date (whichever is greater).
In terms of payment of your tax liability, there is also another additional surcharge penalty system which means that an additional 5% of the tax due at each of the 3 time posts (listed above) could be levied if the tax due remains unpaid. This means that you could pay an additional 15% on top of any other tax liability and penalty that HMRC may levy on you.
Therefore, if you are one of the 11.4 million self assessment tax payers, it makes sense to get your information to your tax adviser (if you have one) and file it well before the 31st
January 2018 deadline. Don’t be one of the 840,000 who missed the filing deadline last year.
Expert self assessment tax return services
At Wisteria, we have a whole dedicated personal tax team to help you with your self assessment tax return. We have many years of experience in filing tax returns and our customers trust us to help and compile their tax returns.
With a dedicated team to help you, we can remove the stress and help you get your tax return filed before the deadline on 31st
To speak with one of our dedicated personal tax specialists, please contact us on 020 8429 9245 or [email protected]
. Alternatively you can contact us via our contact form here