Milsted Langdon is reminding people that if they still haven’t submitted their self-assessment tax returns, additional fines will soon be charged.
From 1 May, people that have yet to send HM Revenue & Customs (HMRC) their returns will incur a five per cent or £300 penalty if their 2013-14 paper self-assessment form is outstanding. Daily penalties of £10 per day for a maximum of 90 days will commence from the same date if an online self-assessment return is outstanding.
Figures from HMRC issued in February showed that more than 890,000 people failed to return their self-assessment tax returns in time for this year’s online deadline of 31 January 2015. These people will have received a £100 late filing penalty but if a return is more than three months late, daily penalties of £10 per day, up to a maximum of £900, are charged.
If you leave it longer and a return is not filed within six months, an additional penalty of £300 or five per cent of the tax due for the tax year is applied, depending whichever is greater. This adds up to a total of at least £1,300 due, even if it is discovered that you do not owe any tax at all.
A further penalty will be issued if the return is not filed within 12 months; although at this point HMRC can regard a case as being more serious and a higher penalty of up to 100 per cent of the tax due can be issued.
Rob Chedzoy, Tax partner at Milsted Langdon, said: “If you feel unable to complete and file your return or are worried about potential errors in the return you wish to send then the best step may be to seek professional help. By speaking with an accountant you can ensure your documents are accurate, removing unnecessary stress and anxiety.
“Failing to file your tax return on time can have large implications for you and your business, but with professional help, the late-filing fines can be kept to a minimum,” said Rob.
If you would like to know more about how Milsted Langdon can help you with your self-assessment tax return, please contact us.