Tax Return Deadline is Looming

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Tax Return Deadline is Looming

January 3, 2018General

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With Tax Returns as low as £70 why wait?

Over 9 million people need to complete a self-assessment tax return this year, so you are not alone. The deadline for filing a return on paper has passed (31 Oct) so the only way to do it is online.

For those doing it for the first time it can seem like a daunting task and to do it online you will need to set up your online account. You will need to apply for and get an activation code, which will be posted out to you.

Anyone who receives a self-assessment tax return from HMRC is legally obliged to complete and submit it.

Even if you haven’t been asked by HMRC to submit a return you may have to if:

You are self employed
You got £2500 or more in untaxed income such as tips, renting out a property etc.
Your income from savings or investments was £10,000 or more.
Your income from Dividends from shares was £10,000 or more.
You made profits from selling things like shares, selling property and need to pay Capital Gains Tax.
You were a Company Director
Your taxable income was over £100,000
Your income (or your partners) was over £50,000 and one of you claimed Child Benefit.
You lived abroad and had a UK income.

Penalties

There are few excuses that HMRC will accept for not filing your return by the deadline (midnight 31^st January). Leaving it too late to get an activation code is not a god enough reason.

There are penalties for both “Late Filing” and “Late Payment”.

These penalties can and will mount up. Interest is charged on Penalties and unpaid Tax

Late filing	Late payment	Penalty
Miss filing deadline		£100
	30 days late	5% of tax due
3 months late		Daily penalty £10 per day for up to 90 days (max £900)
6 months late		5% of tax due or £300, if greater
	6 months late	5% of tax outstanding at that date
12 months late		5% or £300 if greater, unless the taxpayer is held to be deliberately withholding information that would enable HMRC to assess the tax due.
	12 months late	5% of tax outstanding at that date
12 months & taxpayer deliberately withholds information		Based on behaviour: · deliberate and concealed withholding 100% of tax due, or £300 if greater. · deliberate but not concealed 70% of tax due, or £300 if greater. Reductions apply for prompted and unprompted disclosures and telling, giving and helping.