Business News
Check your Doormat for your Tax Return Reminder!
April sees the end of the tax year, and so your notice to file your tax return will be gracing your doormat shortly after April 6th. In light of the recent changes to the penalty regime, it is vital you send through any requested information as a priority ahead of the 31 October and 31 January deadlines in order to avoid the late filing and payment punishments.
The new tax year brings with it stricter penalties for late filing and payments, and you will be penalised the later and later they become, a lot like exceeding your credit limit with a bank or missing a payment with a money lender.
The penalty time line reads as follows;
Penalties for Filing Late
· 1 Day Late - an initial penalty of £100 (even if you have no tax to pay or you have already paid all the tax you owe)
· 3 Months Late - automatic daily penalty of £10 per day, up to a maximum of £900
· 6 Months Late - you will be charged for further penalties, which are the greater of 5% of tax due or £300
· 12 Months Late - More penalty charges, which are the greater of 5% of tax due or £300 Particularly serious cases can face a penalty of up to 100% of the tax due
Penalties for Paying Late
· 30 Days Late – you will be charged an initial penalty of 5% of the tax unpaid at that date
· 6 Months Late - a further penalty of 5% of the tax will be charged that is still unpaid
· 12 Months Late - you will be charged a further penalty of 5% of the tax that is still unpaid
These are penalties you really want to avoid, as these are in addition to the interest you will owe on outstanding amounts and will build up until you have settled the amount ready to start again!
For more information on how to stay ahead, visit www.hmrc.gov.uk/sa/deadlines-penalties.htm
