News

Tax return deadlines for Self-Assessment What happens if do not meet it?

self-assessment tax return deadline has come over the feeling can be that the years pass fast when faced with the responsibility of completing the tax return you’ve always dreaded. If you’re not well-organized as you would like or have not used an online tax-compliant software program to track your expenses and outgoings, you may be lost when you have to send all of your information to HMRC.

However, it shouldn’t be a big surprise that more than half a million people file their tax returns after the 31st of January deadline and probably be people who aren’t ready to fill their tax returns!

HMRC anticipates receiving 12 million tax returns for self-assessment this year, as compared to 10.8m in the previous year. As the 24th of January, 3.4m were still outstanding and the rest have yet to be filed.

Do you have to file self-assessment tax returns?

Employees of the same company or organization usually get their tax deductions deducted from their pay by their employer through the process of Pay As You Earn (PAYE) and then automatically pay the tax to HMRC. Employers aren’t usually required to file an self-assessment tax form.

Self-employed individuals who do not have their taxes taken out at source have to file an self-assessment tax return in order to allow HMRC to properly tax them for their income. You have to pay your self assessment tax bill and submit your tax return before the deadline which is the 31st day of January every year.

You’ll need to file your HM Revenue & Customs tax return if you fall in one of the categories below:

Employed as a self-employed (sole trader) who made more than £ 1,000 during this tax year (before removing anything you are entitled to tax relief for)

  • Part of a partnership for business
  • Rental income from rental receipts
  • Earned money from investments, savings and dividends
  • Are you looking to claim tax breaks, for instance for personal pensions
  • You received child benefit, and your or your partner’s earnings were more than £50,000.
  • Have you sold assets during the tax year like shares, properties or crypto, and realized the capital gain
  • Paye earnings over £100K

What exactly is it that makes people leave at such a late hour?

In recent years there has been an increase in the number of people who have decided to work for themselves due to a variety of reasons. Many have found that they enjoy an easier time balancing work and life when doing this and that it is more in line with their life style.

Some find that they earn more money when they are self-employed, and enjoy the rewards. If you’re a contractor, freelancer, operating in a solo trader or employing employees to do your work Being self-employed is a goal many individuals strive for.

Recent research has shown that the crisis in cost of living is also a major factor for those who work in this manner – whether part-time or full-time.

Many have taken on another job or side hustle to earn extra money or enrolled in full-time work to offset the increasing costs of fuel, food bills as well as interest rate.

However, many are confused by the complexity of self-assessment that can be a bit complex, especially when you have in a second position or earn an income secondarily through an investment property, as in.

If you have a variety in income, Account Ease can help you complete your self-assessment in order to avoid being penalized by HMRC. A professional accountant will ensure that you get all the information you require to ensure your tax return runs smoothly from year to year.

In the period of Christmas many people were unable to get through to HMRC for help, and were forced to wait for their calls to be answered, and getting poor customer service. However, with an accountant who is on with you at all times, it will not have to spend time trying to connect with any other third party.

What is the cost of the late tax return be?

Failure to complete your self-assessment tax returns in time will result in the possibility of a fine. If you’re late you’ll receive a prompt £100 penalty. HMRC is then liable for an additional £10 for each day that your submission is late throughout three months, which brings the total penalty to £1000.

Additional penalties will accrue for as long as your self-assessment remains in arrears.

If you discover that you made any errors, whether in error or otherwise, you’ll be penalized. It is crucial to ensure that all of your filings are completed correctly to avoid this. The official figures indicate that HMRC issued more than 100,000 fines during the tax year 2021/22 due to errors.

At glance:

  • There is a penalty that automatically applies to late filing of £100 which is payable to HMRC when you fail to file by the deadline.
  • Three months later, you’ll be charged an additional penalty of £10 per day, which is up to £900.
  • After six months, you’ll have to pay a fee of £300 (or 5percent of the tax that is due, in the event that this is higher) in addition to the penalties previously stated.
  • If you’re one year or more behind and are charged a further £300 or 5 percent of the tax due in the event that this is higher, along with the penalty mentioned in the previous paragraph.

What can I do to contest my late filed?

If you can provide a legitimate justification for the reason for your self-assessment being late You can contest the late filing fees. The reason you can use to justify your delay could be that your spouse, or a close family member is deceased, or you suffer from an illness or accident that led you to submit late. If you had a hospitalization just prior to the deadline, that would be an legitimate reason.

It is also possible to appeal in the event of a major computer or software issue However, you’ll need to be able to prove it.

You may appeal the penalty for late filing if you’ve completed the tax returns within fourteen days after the deadline missed. HMRC might ask for proof and there is no assurance that a late-filing penalty won’t be eliminated.

If you’re still waiting to file your tax return after the deadline that was last year, Account Ease can help even if you’re yet a client.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button