Received a tax return to file?
If you fail to submit a tax return you have been requested to file, you will be fined and the HMRC might issue an estimated bill. This is called a ‘determination. You have three years from the 31st January filing date to replace the estimated bill. For years where the bill hasn’t been estimated you have four years from the end of the tax year to file the return.
Don’t think you need to file a tax return?
If you believe that you do not need to submit a return, for instance if you are already taxed under PAYE, you should phone the HMRC on 0300 200 3310. If the HMRC agree to withdraw the tax return request, you will no longer have to file a return or pay any penalties issued for missing the tax return deadline.
Need to complete and file your tax return?
A tax return normal must be filed on the 31st October following the tax year end (5th April) for paper tax returns, or by the 31st January following the tax year end for online tax return submission.
If you register for a self assessment later, you will be given three months from the date of issue of the return.
Filed your tax return late?
There are penalties for late payments of tax, filing tax return late and notifying liability to pay tax too late.
The penalties include:
1. A charged penalty. This still stands if you do not owe tax.
2. A £100 fine for those who miss the tax return deadline. This will not be refunded even if not tax is owed.
3. If you fail to file your tax return for three months and over there will be a daily penalty of £10 per day, which an reach upto £900
4. If you fail to file your tax return for six months and over there will be an automatic penalty of £300 or 5% of the tax oweing if this is greater. In some circumstances the penalty can be as high as 100% of the tax due.
Should have been paying tax and have failed to notify the HMRC?
If you earn a new source of income that is tax liable, you should notify the HMRC by the 5th October following the end of the tax year in which the new income arose.
If you fail to notify the HMRC in time you may receive a ‘failure to notify’ penalty. The penalty will be based on the tax due and unpaid at ‘due date.’
The HMRC have wrongly given you a penalty?
You can appeal against your penalty if there are exceptional circumstances that explain why you have missed the tax return deadline.
Have many years of tax returns to complete?
If you have a lot of outstanding Tax Returns there is no need to threat, Usually, you will only have to submit three years worth of late tax returns.
Contact us now for more help on your tax return