With this year’s self assessment deadline now passed, it’s been reported that around one million people still missed the 31 January deadline. Although far fewer people left it until the last day to file (475,722 people compared with 732,498 last year) a significant amount of self assessments failed to be submitted. So how should you manage things if you’re one of the million?
What happens if you file late?
- You’ll be charged an initial £100 fixed penalty – this fine applies even if there is no tax to pay, or if the tax due is paid on time.
- After three months, additional daily penalties of £10 per day will apply up to a maximum of £900.
- After six months, you’ll have to pay another penalty of 5% of the tax due or £300, whichever is greater.
- After 12 months, another 5% or £300 charge will kick in, whichever is greater.
What should you do if you file late?
- File as soon as you can – this will minimise any interest and fines.
- Pay the initial penalty – this avoids you paying interest on the penalty itself even if you choose to appeal.
- Check if you can appeal the fine – there are some circumstances, including serious illness or natural disasters, which may be accepted as a reasonable excuse. You must appeal within 30 days.
- Pay what you owe – pay the tax and any incurred interest as soon as possible.
- Don’t ignore it – £325m in fines and interest charges were issued last year. Speak to your accountant and HMRC and discuss the options, which might include a payment plan.
If you’ve found submitting your tax return difficult, or have filed late this year, consider using a professional to help in the future. Our friendly team, based in Chichester, can offer help and advice with all aspects of you tax planning including your tax return. Just get in touch!