As the New Year gets into full swing, the 31st January deadline for filing tax returns is probably the last thing on your mind. However, it is fast approaching and HMRC have no let up in their stringent penalty system for anyone who doesn’t comply and file on time.
Any self-assessment that is filed on the 1st February or later will receive-
• £100 automatic penalty
• £10 per day penalties from 1st May
• £300 or 5% of tax (whichever is higher) penalties after 6 & 12 months.
As there’s not much room for appeal apart from exceptional personal circumstances the only way to ensure you don’t pay more than you need to is to file on time.
We recommend you –
• Use your time wisely
As most businesses slow down in January we advise you use this time wisely to collect your books and records in good time.
• Know the changes
There have been several key changes to micro business accounting recently. Including cash based accounting with changes on expenditure for using home as office, interest deductions now being allowed to be claimed on mortgages and treatment of debtors.
• Avoid deadline day drama
The 31st January is the worse possible time to complete your tax return. No doubt you’ll be missing crucial paperwork that will mean your return is inaccurate or filed late.
If you’re in any doubt or some want some reliable advice contact us today.