It’s the start of a new year. Few of us feel that life is back to normal, yet. For HM Revenue & Customs (HMRC) however, it’s very much business as usual. Especially when it comes to taxation. So, do submit self-assessment tax returns on time.
Leniency over late returns
During the past two years HMRC’s approach has been more sympathetic. It has accepted explanations when taxpayers submit their returns late. Now, we’re seeing a change in stance. HMRC is hardening its position. Penalties for late returns look more likely.
Just one day late
Typically, taxpayers file self-assessment returns by 31 January 2022. Don’t ignore the deadline. Filing late will almost certainly hit your pocket. Even a single day late will trigger a £100 penalty.
What happens if you fail to submit the outstanding return within three months? There is an automatic daily penalty. It covers the previous 90 days. The charge is at least £10 per day. Consequently, you will incur an additional £900 penalty.
Still outstanding post-July
If the return remains outstanding after 31 July 2022, you will face more financial pain. HMRC can levy a further penalty of £100.
Tax return late – but no tax to pay
Here is the sting in the tail. You may have no tax to pay. However, HMRC will still charge the penalties for the return being late.
Submit self-assessment tax returns on time
Generally, HMRC is prepared to waive penalties for late submission where there is a reasonable excuse. For example, ill health or an immediate family bereavement. That said, HMRC expects you to file as soon as you resolve the ‘reasonable excuse’.
Experiencing difficulties? Our specialist tax team can help. Call us on 01785 243276.