Sunday, February 12, 2012

Missed the tax deadline?

If you are yet to file your self assessment tax return help is still available! But don’t delay as the new HM Revenue & Customs (HMRC) penalty regime will mean that the penalties increase the longer you postpone filing your return. An estimated 1 million taxpayers are expected to receive an automatic late filing penalty of £100 so if you have missed the deadline you are by no means alone. What's different this year however is the new penalty regime.

If you've missed the deadline you'll have to pay a penalty of £100. You should send your tax return online as soon as you can to avoid further penalties. Don't send a paper tax return as the penalties will be even higher. The longer you delay, the more you'll have to pay. When your tax return is three months late, you'll have to pay a penalty for each additional day it is late. When it's six months late, you'll have to pay a further penalty and another final penalty when it's 12 months late. Together these can add up to a penalty of £1,600 or more.


As a reminder if you are in one of the below categories, you have to do a tax return and failing to do so will expose you to the penalties we mentioned above.

Source of incomeAdditional information
Self-employment
You were self-employed for any part of the tax year
Partner in a business partnership
You were a partner in a business partnership for any part of the tax year
Company director
You were a company director (unless this was a non-profit organisation and you didn't receive payments or benefits)
Savings and investment income
You received £10,000 or more in the tax year
Untaxed investment income
You received £2,500 or more in the tax year
Income from property
You received income from property during the tax year
Foreign income that is liable to UK tax
You received any foreign income that's liable to UK tax.
Employment and wish to claim expenses or professional subscriptions
You were employed or a director. You have expenses or professional subscriptions of £2,500 or more to claim.

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