What happens if I file my tax return late?
As a business owner it is essential that you have a clear understanding of your obligations with regards to your tax affairs.
If you are required to file a self-assessment tax return, it is important that you are knowledgeable about the different HMRC deadlines. Keeping up to date, can help you avoid unnecessary financial burden and penalties from HMRC.
If you aren’t sure whether you are required to file, you can read our previous blog here.
Deadlines
- If it is your first time filing a tax-return, you were required to register for Self-Assessment by the 5thOctober. – now passed
- If you are filing a paper tax return, this must be completed by the 31st October. – now passed
- For those who are filing digital tax returns, the deadline is January 31st.
- There is a second payment deadline on the 31st July if you make advance payments towards your bill (payments on account).
Penalties
Penalties for filing a late tax return vary, but they will be implemented unless you appeal and have a reasonable excuse.
If your tax return is late you will pay a fee known as a ‘filing fee’ this is a charge of £100. Even if you don’t owe any tax, you will not be refunded the £100.
If it is more than 3 months late the fine will increase. You will start to be charged a penalty of £10 a day, up until the 6-month mark. This means you could be fined an additional £900.
If you are more than than 6-months late, you will be penalized in 1 of 2 ways. You will either be fined an additional £300 or 5% of your tax owed. HMRC will choose whichever is the higher sum.
If you are late three times in a row to file, your penalties will increase, the initial £100 will rise to £500. Your ability to appeal HMRC’s corporation tax estimate will also diminish. This means you could end up paying more corporation tax than you would have needed too.
Overall, filing your tax return late is a big financial mistake, and is also completely avoidable in most cases.
How we can help
At Riverview, we deliver our clients with a comprehensive range of business services including tax returns. We pride ourselves on our ability to deliver a personalised service to drive you or your business forward.
We can take away the burden of responsibility for keeping up to date with HMRCs deadlines and rules.
If you need help with this year’s return, don’t hesitate to get in touch with the team today.
If you are late filing for previous years, it is best to get the ball rolling to reduce any extra fines by HMRC, get in touch with the team and we can put a plan of action in place.
#selfassessment
