Avoid the automatic £100 fine from HMRC for missing the self-assessment deadline on January 31st.
The penalties for late tax returns are:
- An initial £100 fixed penalty, which applies even if there is no tax to pay, or tax due is paid on time
- Ensuing 3 months, additional daily penalties of £10 per day, up to a maximum of £900 can be added
- After 6 months, a further penalty of 5% of the tax due or £300, whichever is greater
- After 12 months, another 5% or £300 charge, whichever is greater
- There are also additional penalties for paying late of 5% of the tax unpaid at 30 days, 6 months and 12 month
It’s crucial not to leave this to the last minute if you think you may have any queries or need a new password etc. HMRC contact telephone queue times have doubled in recent years and response time can range from weeks to months.
How to make sure you’re on top of it?
Are you a partnership or sole trader? Then preparing annual accounts is a must-do for your business. Your annual accounts aren’t just there to burden you. They provide you with essential information on the performance of your business in order for you to make better-informed decisions.
How Spectrum can help you?
- Spectrum Accountancy Solutions are able to work with accounting records of any type. Anything from a bag of paperwork to an online or desktop-based accounting system.
- As part of the self-assessment process, we will ensure that we work through your numbers with you at a pace that suits you to ensure that you have a full understanding of your accounts and their implications for your business.
- Spectrum can help you get together the information needed to complete the assessment.
- By completing and filing your tax return on your behalf. Keeping you informed of when your tax payments are due and how much to pay.
- In the event that you face a tax enquiry from HMRC, we are on hand to provide advice and support.
You can find that advice throughout the internet can be conflicting. For an initial consultation please contact us and find out how we can support you through your preparation for year-end accounts.
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This post was written by Daisy Vowles