Deadline for self-assessment tax return (SATR) is 31 January.
Anyone who is self-employed, who has turnover in excess of £1000, regardless of making profit or a loss, has to submit SATR to HMRC.
Penalties if you don’t submit your return on time:
- From 01 February (even 1 minute latee) – £100.00
- From 01 May (3 months late) – £10 per day, up to £900.00
- From 01 August (6 months late) – additional £300.00
- From 01 February (12 months late) – another £300.00
Plus, you have to pay interest on amount due.
Example
Mr Smith forgot to submit SATR for the last tax year. He had time to do it until midnight 31 January. However, he simply forgot. Today, 28 October, he contacts me and asks to do he SATR.
Therefore he will have to pay the following penalties:
- £100.00 for the missed first three months (after 01 February)
- £900.00 for the next missed 3 months (after 01 May)
- £300.00 for another 3 months (after 01 August)
As a result Mr Smith must pay £1300.00 as penalties, plus any tax due.
In addition, if he was to leave it after 01 February next year, he would have to pay additional £300.00 penalty.
Mrs Smith as a builder was expecting to get refund of the overpaid CIS. Now not only he may not get anything, but he may have to as well pay more due to penalties.
How to appeal?
You can appeal against the penalty under reasonable excuse. List of reasonable excuses can be found on HMRC website.
Remember – if you need accountant, he needs at least 7 working days to register as your agent plus you have to remember then at the last minute HMRC system is very busy so you return may not be received on time.
In conclusion – DO NOT leave it to the last minute or you may be penalized.
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