HMRC remind taxpayers of credit card ban ahead of January deadline

The Institute of Chartered Accountants in England and Wales (ICAEW) has reminded small business owners and taxpayers it’s no longer possible to pay for their outstanding tax via personal credit cards.

Last year, HM Revenue and Customs (HMRC) brought an end to paying self-assessment tax bills using personal credit cards.

The deadline for online self-assessment tax returns for the 2017-18 financial year is 31st January 2019.

There are several different payment options available, including:

  • Debit card
  • Direct debit
  • Online/telephone banking
  • BACS
  • CHAPS
  • Cheque
  • Bank/building society

If are going to have difficulties making a payment, it’s important that you contact HMRC at your earliest convenience, so they can help advise you on what options you have. Caroline Miskin, Technical Tax Manager, ICAEW, suggested the Time To Pay Arrangement and Budget Payment Plans could also be an option for some taxpayers, depending on their unique circumstances. 

The most common reasons a tax return may be required are as follows:

  • You’re self-employed or working in a partnership
  • You have significant savings or investment income
  • You have untaxed savings or investment income
  • You are a buy-to-let property landlord
  • Your household receives Child Benefit and your income is in excess of £50,000
  • You have income from outside the UK
  • You have recently sold or given away asset(s)

If you need help with any of the above, don’t delay, call us today 01932 868 444 or  contact us our friendly and experienced team can work with you to prepare your self-assessment tax return ahead of the 31st January 2019 deadline.

 

 

The Deadline for online self-assessment tax returns for the 2017-18 financial year is 31st January 2019

More than 10,000 self assessment tax returns were submitted online during Christmas Day and Boxing Day, according to new figures released by HM Revenue & Customs (HMRC).

11.5 million UK-based taxpayers are expected to submit a self-assessment tax return for the 2017/18 financial year by 31st January 2019, some 88% of the six million-plus tax returns already filed for the 2017/18 have been submitted online, indicating that the vast majority of UK taxpayers are adapting well to the shift towards “Making Tax  Digital” (MTD).

The most common reasons a tax return may be required are as follows:

  • You’re self employed or working in a partnership
  • You have significant savings or investment income
  • You have untaxed savings or investment income
  • You are a buy-to-let property landlord
  • Your household receives Child Benefit and your income is in excess of £50,000
  • You have income from outside the UK
  • You have recently sold or given away assest(s)

The consequences of filing your tax return late

A late tax return is subject to the following penalty regime.

  • An initial £100 penalty, which will apply even if there is less than £100 tax to pay
  • After 3 months, additional daily penalties of £10 per day  – up to a maximum of £900
  • After 6 months, a further penalty of 5% of the tax due or £300 – whichever is greater
  • After 12 months, another 5% of the tax due or £300 – whichever is greater. In serious cases, the penalty after 12 months can be up to 100% of the tax due

Each of these penalties is in addition to one another, so a tax return filed a year late could face numerous penalties.

Don’t leave it until 31st January. The more time you leave yourself to prepare your tax return, the better.

Last year, the busiest days for filing were 30th and 31st January, when 60,596 tax returns were received – a staggering 1,010 per minute.

So don’t leave your tax return until the final day, as HMRC’s website and call centres will be under tremendous pressure.

Wellden Turnbull can help take care of all your tax affairs, so don’t delay, call us today 01932 868 444 https://www.wtca.co.uk/contact-us/