The deadline for completing your self-assessment and submitting your tax return is fast approaching and let’s be honest is anyone really going to want to sit down a week before the Christmas holidays or during your much needed and well earned break between to start printing out bank statements, writing up the sales book and expenses. Personally I can think of much better ways to spend my time off.
You must complete a tax return should any of the following be the case:
Self-employed with an income exceeding £1,000 includes being a member of a partnership
A company director
Receiving income a certain level from savings, investment or property
Savings & investments = Taxed Saving & investments of £10,000 or more
Savings & investments = Untaxed Saving & investments of £2,000 or more
Property = Income of £2,500 after deduction allowable expenses
Capital Gains Tax
There are a number of dates to remember and the fines/penalties that may occur should these be missed:
Tax returns including supplementary forms must be submitted by 31st January 2023
If the taxpayer wishes for HMRC to collect their tax liability through their tax code, the deadline for submission is 30th December. Tax can only the collected through the tax code if the liability is less than £3,000 and if the taxpayer has sufficient income tax via PAYE
The fines and penalties HMRC:
Penalties are imposed if a tax return is submitted after the filing deadline. These are detailed below:
Late by one day has an initial £100 even if there is nil liability
Late by three months will incur an additional £10 each day up to the maximum of £900
Late by six months will incur an additional £300 or 5% of tax due, depending on whichever is the higher
Late by twelve months will incur an additional £300 or 5% of tax due, depending on whichever is the higher
Interest and penalties on late payment. Interest may be charged on the late payment of payment on account and balancing payments. The interest rate is currently set at 5.5% (November 2022) and it will be applied from the due date to the day before the actual date of payment. Penalties are imposed on the late payment of tax and apply to balancing payments. The penalties are:
Late by 30 days the penalty is 5% of tax unpaid at that date
Late by 6 months the penalty is a further 5%
Late by 12 months the penalty is a further 5%
If you need help submitting a last minute self-assessment or tax return get in touch. We are happy to help.
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