Accountants Tamworth
Find out more about your local accountants in Tamworth
Beware! The penalties for filing your tax returns have increased
by Haines Watts Tamworth on 10 January 2012
If you submit your tax return after the deadline of 31 January you could be hit with a bigger penalty thanks to new HMRC rules.
Previously, the initial penalty was £100, which could be reduced if your actual tax liability was less than that amount. Although the penalty is staying at £100, now it can’t be so reduced.
What’s more there are now extra charges in place. If you file more than 3 months late HMRC can impose a daily penalty. And, after six and twelve months delay, you receive further charges.
Here’s how it breaks down:
• A day or more late – automatic £100 penalty
• Three months late – £10 a day, up to a maximum 90 days
• Six months late – 5% of the tax due or £300, whichever is higher
• 12 months late – 5% of the tax due or £300, whichever is higher
Therefore, if you’re 12 months late with your return you could face a penalty of at least £1,600 and could be much more since the maximum penalty depends on the amount of tax you pay.
So, it makes sense to get your tax return information to Haines Watts as soon as you can. The longer you leave it, the more it will cost.
Our Top tips to avoid unnecessary penalties:
• Remember, there are charges for late payment of your tax, as well as late filing.
• If you submit your tax return early, it doesn’t mean your payment is due earlier.
• One of the best ways to avoid a late submission is to make sure your records are always accurate and bang up to date.
We can advise you about the information that’s needed for your return. Contact us if you have any questions.
If you want any further information on this blog post please contact us.
All fields marked with * are required