Act Now to Avoid an Extra £1500 in Late Tax Return Fines
The HMRC deadline for submitting your 2013-14 Tax returns passed by on the 31st of January, did you remember to submit yours? If not then the chances are that you’ve been hit with a £100 penalty, which is pretty gutting. Leading up to the deadline, we wrote a reminder post which mentioned this £100 fine along with a little information on where to find guidance on completing your return. What we didn’t mention in that post are the details of the further fines which HMRC can choose to levy if you still haven’t gotten around to submitting your return or if you delay it much longer.
I’m not trying to be the conveyor of bad news here but did you know that the £100 fine for a late tax return submission isn’t the only fine that could wind up being levied? HMRC also have fine structures in place for further delays in submitting your tax return and these are as follows:
- after three months an additional daily penalty of £10 per day can be added to your tax bill until a return has been submitted up to a maximum of £900
- if your tax return is more than six months late, then a further penalty of 5% of the amount of tax due or £300 – whichever is greater – can then be levied to your account
- if HMRC still haven’t received your tax return after 12 months then another 5% of the amount due or £300 charge – whichever is greater – will be applied to your account.
So if you did manage to miss the January 31st deadline for the submission of your tax return then it is clear to see just how important it can be not to delay things any further, as this could lead to more fines being levied totalling around £1500, or possibly even more. If you are unsure about certain aspects of your tax return and feel you need further guidance then it could work out to be very cost effective and prudent for you to seek the help of a qualified chartered or certified accountant. An accountant will be able to give you much help and advice and the cost of an accountant’s services are also tax deductible, so this option could be well worth your consideration. If you would prefer not to spend out on accountancy fees, then be sure to check out the handy guides and helpsheets that HMRC have provided on their website which should answer the majority of the questions you might have.
If you’re new to self-employment then it is quite understandable that you may not have known or otherwise misunderstood the exact date on which your tax return was due to be filed. In fact, it is estimated that 890,000 people have failed to submit their return on time leaving them facing the £100 fine. If you take action now however, then you will avoid further fines and problems and you will then be able to get on with what you do best, making money.