Self-assessment deadline less than one week away; new penalty regime commences
With less than a week remaining before the online self-assessment tax return deadline for 2010/2011, it is even more important that you submit your tax return on time or you may risk having to pay a fine according to a newly strengthened penalty regime.
As well as the usual £100 fine for filing a tax return after the 31st January deadline, failure to file a return within the next three months will result in fines of £10 a day, up to a maximum of £900. Any further delay in filing a return would result in a further fine of £300 levied after six months and another £300 fine after twelve months, adding up to a potential total fine of £1,600.
If your business is run as a partnership, the nominated partner must also complete a partnership return by 31st January. The nominated partner is responsible for sending in the partnership Return, but you will be jointly liable with your other partners for any penalties, surcharges and interest if the return is late or inaccurate.
Any unpaid tax for 2010/2011 has to be paid by 31st January 2012; if it is not, interest will be charged.
Usually, HM Revenue & Customs (HMRC) will agree to take payment for tax owed by adjusting personal PAYE codes and liabilities of up to £3,000 can be paid in this way. If your tax bill is over £3,000, HMRC will usually ask for payment on account for the following tax year. The first payment on account for 2011/2012 is also due by 31st January 2012, with a further payment due on for 31st July 2012.
We understand that managing your tax affairs and keeping abreast of all the latest tax rules can be a challenge. While we do not provide a specific in-house tax advisory service, we are able to recommend a suitable service at your request. Please contact us on 01275 462469 for further details.