Never mind the festive season and Santa, the HMRC tax return season is nearly upon us and for many, it is the Self Assessment deadline and the Taxman that is arriving shortly.
This year, over 10.7 million tax payers submitted their self assessment before the 31st January deadline. There were a few who risked being late to the party, with 30,348 completing their returns between 11pm to 11:59pm on the deadline day.
If, like many busy business owners at this time of year, you want to address it and get it ticked off the list of things to do, here are a few more reasons why you would be a wise man or wise woman to do so!
5 Benefits Of Sorting Out Your HMRC Tax Return Earlier
- The sooner you file, the sooner you know if you are due a refund if you have overpaid.
- The tax return deadline is also when you are required to pay the amount due. If you need to get some money together for this, the sooner you get an idea of how much you need to pay, the better.
- If you make the most of the Christmas period to get your paperwork sorted ready for your accountant, you can feel accomplished in January when all around you are spinning plates trying to get theirs done.
- Be prepared to have to pay more this year than last year if your profits have increased. The more notice you have of this increase, the better you can plan for your business in 2019.
- Getting it sorted early means you should avoid penalties imposed by HMRC, these are applied once the deadline passes and continue to rise until it is done.
The Penalties For Late Tax Returns:
- An initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time.
- After 3 months, additional daily penalties of £10 per day, up to a maximum of £900.
- After 6 months, a further penalty of 5% of the tax due or £300, whichever is greater.
- After 12 months, another 5% or £300 charge, whichever is greater.
If you need any assistance with filing your tax return, our expert tax team can help – don’t delay, give us a call on 01244 400315 or email [email protected].