Do You Know Your Tax Return Deadlines?
Here at Virtual Accounts we do have lots of enquiries regarding Tax Returns, for paper returns it is 31st October, but still many people don't realise that it can be submitted online until 31st January.Here's an excerpt from the Direct Gov website:
Deadlines for sending in your tax return
31 October: paper returns
If you send a paper tax return it must reach HMRC by midnight on 31 October.
So for the 2013-14 tax year (ending on 5 April 2014), the deadline for paper returns is midnight on 31 October 2014.
31 January: online returns
Your online tax return must reach HMRC by midnight on 31 January.
So for the 2013-14 tax year, the deadline for online returns is midnight on 31 January 2015. There are very few exceptions. As an example, the deadline may be later if it's after 31 October when HMRC sends you the letter telling you to complete a tax return. In this case the letter will tell you the deadline - it is usually 3 months from the date of the letter.
There's also an earlier deadline of 30 December if you want HMRC to collect any tax you owe through your tax code. You can ask for this if you owe less than £3,000. Please show this clearly on your tax return. HMRC will try to collect the tax due through your code, but they can't always do so.
Penalties if you miss the tax return deadline
If you miss the deadline, the longer you delay, the more you'll have to pay. So it's important to send your tax return online to HMRC as soon as you can. The table below shows the penalties you'll have to pay if your tax return is late. If a Partnership tax return is late, each partner will have to pay the penalties shown below.
Length of delay
|
Penalty you will have to pay
|
|---|---|
1 day late
|
A penalty of £100. This applies even if you have no tax to pay or have paid the tax you owe.
|
3 months late
|
£10 for each following day - up to a 90 day maximum of £900. This is as well as the fixed penalty above.
|
6 months late
|
£300 or 5% of the tax due, whichever is the higher. This is as well as the penalties above.
|
| 12 months late | £300 or 5% of the tax due, whichever is the higher. In serious cases you may be asked to pay up to 100% of the tax due instead. In some cases the penalties can be even higher than this. These are as well as the penalties above. |
Example
Mrs A's tax return is due on 31 January 2015 but HMRC doesn't receive it until 5 August 2015.
It is over 6 months late so she will have to pay all of the following:
- £100 fixed penalty
- £900 penalty - this is £10 each day from 1 May to 29 July, when the maximum 90 day penalty is reached.
- £300 or 5% of the tax due - whichever is the higher
You may think you have a reasonable excuse for sending your tax return late. You can find out more about reasonable excuses in the 'How to appeal' article (see link below). You don't need to wait until you get a penalty, you should let HMRC know as soon as you can.
Vicky Newham our Managing Director set up Virtual Accounts after the success of her more traditional practice in Huddersfield, www.solutionsbookkeeping.co.uk.
She realised that many business owners don’t want or need such intensive support but rather than want a cost effective and straightforward accountancy solution without ever having to enter an accountant’s office.
As online accountants we do everything an everyday accountant would do, except make it even easier for you, with 24 hour access to your accounts and a real life accountant you can talk to or email. Guess what? You don’t even have to leave your seat.
Sounds great doesn’t it? Well we think so too, and we look forwarded to working with you as a like-minded business owner.
