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Deadlines and Penalties: Personal self-assessment tax return submissions and tax payments

Abul Nurujjaman, 



Tax Return, Penalties, And New Year; Here s What You Need to Know!

 

It is that time of the year again when you rush more to pile up your tax return details than you go to the shopping malls with huge sales. And every year you do the same, but in the next few moments, we would like to inform you about the penalties for both failed to submit the tax return and failed to pay the tax bill, in detail. So that next time, you can focus more on the celebrations. This system has been functional since the year 2010/11.

 

 

The process starts at registration. You should register for self-assessment by 5th October. The date for your paper tax returns is 31st of October. For your Online tax returns, the deadline is Midnight 31st of January. You must pay the tax you owe by the Midnight 31st of January.

 

For your Payment on an account, 31st of July is an additional payment deadline if you pay in advance towards your tax bill. So these are all the deadlines that you need to keep in mind. Because you could face serious penalties if you somehow forget to consider them. In the event of late filing, that is if you miss the deadline of 31st of January, you ll have to pay the penalty £100, and an interest of 5% of the tax due on your late payment. Moreover, if 3 months pass and you still fail to file by Midnight 30th of April, you ll have to pay an additional penalty of  £10 daily starting from the first of May up to 90 days making the amount up to £900, and an interest of 5% of the tax due or £300 on late payment. 6 months late, Not filed by midnight 31 July – Further Penalty of £300 and an interest of 5% on the tax due or £300 if greater, unless the taxpayer is found to withheld information deliberately which will ultimately permit HMRC to assess the tax due, 12 months late- Not filed by midnight 31 January- Further Penalty of £300, 5% on tax due at that date.

 

 

Furthermore, if the taxpayer withholds the information on purpose after 12 months, there could be two possible outcomes depending on the behavior of the taxpayer.

 

  • A 100% deliberate and concealed withholding 100% of the tax due, or £300 if greater.

 

  • deliberate but not concealed 70% of the tax due, or £300 if greater.

 

Late filing

Late Payment

Penalty

Miss filing deadline

 

£100

 

30 days late

5% of the tax due

3 months late

 

Daily penalty £10 per day for up to 90 days (max £900)

6 months late

 

5% of tax due or £300, if greater

 

6 months late

5% of tax outstanding at that date

12 months late

 

5% or £300 if greater, unless the

taxpayer is held to be deliberately withholding information that would enable HMRC to assess the tax due.

 

12 months late

5% of tax outstanding at that date

12 months & taxpayer deliberately withholds information

 

Based on behaviour:

  • deliberate and concealed withholding 100% of tax due, or £300 if greater.
  • deliberate but not concealed 70% of the tax due, or £300 if greater.

Reductions apply for prompted and unprompted disclosures and telling, giving and helping.

 

 

 

What needs to be kept in mind is the fact that If your self-assessment tax return was not submitted by the deadline 31 January, you incur £100 penalty. And it is still outstanding on the following year 31 January which means your return is 1 year (12 months late), your total penalty would be a total of £1600 which is huge. So in order to avoid any kind of inconvenience, please take a note of the above-mentioned deadlines and act accordingly because the sooner the better is the best strategy when it comes to self-assessment and tax return submission.


Disclaimer: The information provided in this blog is brought to you by Taj Accountants. As you are reading this blog of your own free will, any information taken from this blog is at your risk. Before using the information provided to apply, to your business seek professional or legal advice.Taj accountants will not be liable for any damages.

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