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.