You may have seen on the news, that according to HMRC one third of tax returns expected have still not been filed. This is concerning considering we only have one week to go!
According to HMRC they estimate around eight million people have already filed their tax returns
What are the problems with leaving it so close to the deadline?
TIME SCALES:-You need to account for the few days it takes to register with HMRC online, this enables you to submit electronically and directly to HMRC avoiding the issues with paper tax returns.
IT ISSUES: – HMRC have enabled self assessment customers the facility to submit their tax returns through their personal tax account. This only takes a few minutes to set up! BUT BE AWARE HMRC has admitted that they have experienced issues with the IT in the self assessment population service. Though this is fixed, their will always be glitches with any programs. Leaving it so close to the deadline means you are reliant on HMRC providing a flawless service.
Sourcing an accountant: – January is notoriously busy for accountancy practices, Blue skies have a number of processes in place that avoid any of our staff being under unnecessary stress. These include keeping our clients accounts up to date where possible, by doing this we are able to provide in advance for your up and coming tax payments. If you do need to source an accountant you may find that many are unable to guarantee your tax return by the 31.01.2018, thus incurring penalties.
FINES and Penalties
If you are late submitting your tax return you automatically incur a £100.00 fine, plus any tax you owed for the year that was due to be paid by 31.01.2018 will incur fines as well!
For example Peter has forgotten to submit his tax return; he has a tax liability of £20,000. Below are the fine incurred for the late submission of Peters tax return
Peter also as well as incurring fines and penalties on the late submission of the tax return ALSO incurs penalties on not paying his tax liability on the due date of 31.01.2018. He therefore gets more fines!
So not only is it essential you submit your tax return on time, you also need to make sure you pay your tax liability by the 31.01.2018! In a previous article on our website you will find a guide on how to pay. If you are a client you would have received reminders on what is owed and how to pay, If you have any concerns, or we can help please feel free to give us a call.
Here at Blue Skies we are fast getting in to the festive cheer. Christmas decorations are being located and dusted off, the office party is booked and everyone is ready to pull out the Christmas jumpers!
Though as surprising as it may be, it seems that HM Revenue and Customs (HMRC) are not sharing this Christmas Spirit
In a move which has massively backfired, the Government under pressure from consumer groups, announced ideas to introduce a ban on the often extortionate credit and debit surcharges in the UK. On the very same day, HMRC decided that they would also not accept any personal credit card payments from 13th January 2018 for tax payments.
As one can imagine a lot of self-employed workers, company directors, tax payers and “Joe Public” are naturally angry about this. Considering personal tax payments on account are due on the 31st January 2018, removing the option to pay by Personal Credit card will leave a number of people unable to pay their tax bill, unless they have forward planned. So if you had plans to pay your tax bill with your personal credit card, then this needs to be paid before the 13th January 2018 deadline.
What does this mean?
It means that payment can only be made through Bank transfer, direct debit, faster payment, bacs or debit card.
(For any limited companies out there that might be wondering, currently business can still use business credit cards to pay VAT, PAYE, Corporation Tax and Personal Tax if needed)
Hopefully, all of our clients are already saving towards their tax payments, with our upfront tax planning advice, so this may not hit our clients as much as it may hit other taxpayers. However as much as we all work hard to ensure we are on top of our cashflow, business life is inherently unpredictable and there will be situations where things just don’t go to plan.
And if that hasn’t made paying harder. Update for those that pay at the post office
HMRC from the 15.12.2017 have announced that you will not be able to pay at the post office either! You will be able to pay be Debit card or cash if:-
• still get paper statements from HM Revenue and Customs (HMRC)
• have the paying-in slip HMRC sent you
Some branches will allow you to pay by cheque if its made payable to “post office Ltd”
We will be shortly sending out a number of emails reminding your what is due and how to pay, if you need any further advice please give us a call sooner rather than later.
Just a reminder that if you don’t pay your personal tax bill by the 31st January 2018, HMRC will send you a rather belated Christmas present of 3% interest on the outstanding amount.
If you are a client and find yourself unable to meet the payment deadline get in touch with us ASAP, we may be able to contact HMRC on your behalf and form an arrangement.
If you aren’t currently a client but feel you may be facing a similar situation, or your 2017 tax return isn’t yet complete give us a call and we can see what we can offer.