Last week HM Revenue & Customs (HMRC) issued a reminder that the date for submitting tax returns for the 2011/12 tax year on paper is 31 October and that anyone submitting a paper return that is received after that date will be subject to a penalty of £100, even if there is no tax to pay or the tax due is pad on time.
Under the new rules introduced last year for late filing, if a return is still outstanding three months later, the individual will also be charged £10 a day up to a 90 day maximum of £900.
Then, after six months, a late filer will face an extra charge of £300 or 5 per cent of the tax due. While if a full year goes past, the individual will be fined another £300 or 5 per cent of the tax due. And people who are late may be asked to pay up to 100 per cent of the tax due instead of this, but will still have to pay all the other charges.
However, the department has also said that anyone who is not able to submit a paper return by the end of the month can avoid a late-filing penalty by submitting their return online by 31 January.
More than 80 per cent of taxpayers now pay online. And one of the benefits of paying this way is that, as well as having an extra three months to file, anyone filing online will have their tax calculated automatically and their tax return processed faster, so any money they’re owed is repaid more quickly.
Around 10.6m self-assessment returns, or notices to complete a return, were issued for 2011/12. If the notice was given after 31 July 2012, the deadline is extended and the return must be submitted within three months beginning with the date of the notice.
As an accountant in Bristol, Elaine Durrant specialises in offering tax advice, guidance and support to businesses and individuals.