This year, HMRC made quite a big deal about their Deadline, It was a direct effort to ensure self-assessment forms were complete and submitted in due course. What happens now though to those that forgot, left it to late or perhaps simply didnt realise that a tax return was due from them?
Some half a million people will not have filed their taxes even as late as two weeks prior to the HMRC deadline of January 31st. It is no surprise that a lot of people may then overrun the deadline resulting in late submissions. This of course is not what the Tax-man wants, and there is fallout.
“The thing to note here: Act quickly or you’ll find yourself down by a smooth grand.”
End of The Line?
Take a breath, relax a little. If you are a little late that you wont be taken to the chopping block just yet however while you may not be chased out of town by the sheriff, Her Majesty’s Government will now have reason to be interested in you.
As of 1992, the Government has taken steps reassessing laws in this area and has been seeking to provide individuals and businesses much harsher penalties for not meeting deadlines such as the self-assessment return.
You May Face Penalty.
Right off the bat, £100 … that’s what can be expected as an initial penalty simply for an acknowledge late return.
But that is not all, for every day following and up until a return is filled that will be an extra £10 they’ll be asking for during the first three months after the event,Up to a nice round £900 so. The thing to note here: Act quickly or you’ll find yourself down by a smooth grand.
Oh but wait, there is more yet… If six months pass and you have failed to react you can expect a bill of 5% of the due tax, or should it be deemed more appropriate a nice simple £300 fine.
Another six months and still not taken action? Expect a repetition of that last round of fines and not forgetting at this stage you’d most likely be asked to pay your tax bill in full. At this point things could be called ‘quite serious’ and you’d be facing most likely thousands of pounds in debt to HMRC.
Avoid Causing The Problem.
Really it’s too late now, hindsight is 20/20 they say, If this year has been problematic be sure to put in place more stringent filing of your financial material, consider professional 3rd party help seek to educate yourself on how to more efficiently deal with your taxes. It is better to avoid potential late penalties and get on track with filing your return on time.
The most simple factor involved, if you do not feel capable, seek help. Look for local support of those that work in financial fields or versed in the laws involved. Even if that 3rd party service costs you hundreds of pounds, remember, if you cannot yourself come to deal with an issue that may have cost you thousands in fines, a few hundred pounds spent could save you money in the long run.
It’s Already Happened, Now What?
We always like to remind business owners that we are a specialist service designed specifically to help business owners which might already be at a point where continuing to trade is no longer viable. We are experts in dealing with businesses which may have thousands in debt and we aim to close problematic businesses and potentially write off bad debt. If you need help dealing with a closure of a business, call us directly to find out how we can help you
How to Close Company – 0845 409 4471