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/