31 January has come and gone, but have you submitted your tax return?

Wow, no wonder we were busier than ever this year, a record 9.45 million self-assessment tax returns were filed on time this year, with 80.9% filed online according to HMRC.

So 90.4 per cent of taxpayers met the deadline for the tax year, an increase of 4 per cent – or 800,000 returns – on the previous year. But at the end of this week HMRC start to send out their tax penalties chasing those who filed their returns late or who have still to file.

Are you one of those taxpayers who still needs to file their tax return?

HRMC calculate that there are about 900,000 penalty notices to be sent out this year which even if they are all liable for the £100 fine will mean HRMC gets £90million to fill the tax deficit.  However with the new penalty regime HMRC will be issuing penalties for far more than £100…

Late filing of tax returns carries a penalty and with the new penalty regime you could start to owe a large amount of money even if you haven’t got any tax to pay from the last tax year 2010-2011.

Tax Filing Penalties

The new penalties for late filing are:

• One day late an initial penalty of £100
• Three months late a daily penalty of £10 per day up to a maximum of £900
• Six months late an additional £300 or 5% of any tax outstanding, whichever is the higher amount
• One year late a further £300 or 5% of any tax outstanding, whichever is the higher amount

With fines no longer capped at the tax owed, the minimum penalty for filing 6 months late is £1,300 even if all your tax due is paid on time or you are due a tax repayment.

HMRC will also impose fines if you are late in settling your self-assessment tax liabilities, they will add a penalty calculated at 5% of the tax unpaid at 30 days, 6 months and 12 months to your debt. They will even charge you interest until the debt is cleared.

Our advice if you still haven’t filed your tax return is don’t delay… file today!! – A bit corny we know but it will save you money!!

If you need help to file or complete your tax return then call me now on 0845 365 1000 or email me.

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