Thanks to our Accountant “bestof” members for alerting us to the penalties face if you miss the tax return deadline:-
It's really important to send your tax return online to HMRC as soon as you can – the longer you delay the more you pay in penalties. The table below shows the penalties you'll have to pay if your tax return is late. If a Partnership tax return is late, each partner will have to pay the penalties shown below.
Penalties for missing the tax return deadline:-
1 day late -A penalty of £100. This applies even if you have no tax to pay or have paid the tax you owe.
3 months late - £10 for each following day - up to a 90 day maximum of £900. This is as well as the fixed penalty above.
6 months late - £300 or 5% of the tax due, whichever is the higher. This is as well as the penalties above.
12 months late - £300 or 5% of the tax due, whichever is the higher.
In serious cases you may be asked to pay up to 100% of the tax due instead.
These are as well as the penalties above.
Mrs A's tax return is due on 31 January 2013 but HMRC doesn't receive it until 5 August 2013.
It is over six months late so she will have to pay all of the following:
£100 fixed penalty
£900 penalty - this is £10 each day from 1 May to 29 July, when the maximum 90 day penalty is reached.
£300 or 5 per cent of the tax due - whichever is the higher
You may think you have a reasonable excuse for sending your tax return late. You can find out more about reasonable excuses in the 'How to appeal' article (see link below). You don’t need to wait until you get a penalty, you should let HMRC know as soon as you can.
We don’t want to be alarmist – but don’t wait till the end of the month to get your tax sorted. Just give our highly recommended Accountants a call today
LAMONT PRIDMORE - 01229 841344
MELVILLE AND CO - 01229 434000
SDG ACCOUNTANTS - 01229 838 567