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Hot Topic – Self-Assessment – 3 Month Warning

Hot Topic – Self-Assessment – 3 Month Warning

Hot TopicToday is the 1st May.  The sky out of the office window is the same colour as the Simpson’s sky (with the same clouds) and the flowers are blooming.  All is good.

What is not so good is if you’ve still not filed your 2011/12 self- assessment tax return.  From the optimism of Spring to taxation in less than a few words.  Sorry about that…

Anyway if you missed the 31st January deadline, then you will already have been stung with a £100 penalty – this is even if you don’t owe them anything or you’ve actually paid the money on time.

Three months late,  more penalties start to kick in – from today, the 1st May, at £10 for each day your online return is late!  (Late paper returns have started the £10 per day clock ticking already).  Although the fine is capped up to a maximum of £900 (ie 90 days) it’s quite a bitter pill to swallow if you get caught with that plus the £100 you’ve already incurred.

More penalties follow after 6 months – 5% of the tax due or £300 (whichever is most) and after 12 months – another 5% or £300 charge (whichever is most).

Extra penalties also apply for paying late – 5% of the tax unpaid at 30 days, 6 months and 12 months.

It is worth knowing that last year HMRC took 160,000 people out of self-assessment  once they’d been contacted by the taxpayer and it had been agreed they don’t need to self-assess.  So if you think that applies to a client or someone you know, it’s worth making the call to avoid these penalties building up.

And the amount of people that haven’t filed yet?  According to figures in the press over the weekend, 730,000 taxpayers.  Now that’s a lot of fines…