Missed Deadline Late Tax Return Fines

Missed Deadline Late Tax Return Fines.

Today is the last day to file you self-assessment tax return.

If tax is owed, you are also required to pay this today or face late payment penalties.  

Self-assessment is due for the tax year 6^th April 2012 to 5^th April 2013.    This is some 9 months after the end of the tax year, so most of us really do not have an excuse for not having filed our tax return or at least be in a position to file this before midnight tonight.

1.3m Yet to File Returns

HMRC estimated this morning that up to 1.3m had yet to file their tax return.  On the final day last year, nearly 600,000 tax returns were filed.

Child Benefit Tax Charge

In addition, HMRC estimates that some 100,000 people who earn over £50,000 - £60,000 have not registered at all for self-assessment and they need to given they are required to pay extra tax as they are not entitled to Child Benefit, so a tax payment is due, technically refunding the Child Benefit received.

Late Filing Penalties

HMRC levies penalties for late filing and late payment of tax due.  The penalties are as follows:

• 1 day late = £100 fine
• 3 months late = additional £10 per day fine the £10 per day is capped at £900 i.e.  90days circa 3 months.
• 6 months late = additional £300 or 5% of tax outstanding whichever is higher  (£10 per day continues)
• 12 months late =  additional £300 or 5% of tax outstanding whichever is higher.
• Later than that – HMRC may wish to see you in Court.

The simple answer is to get registered for self-assessment or indeed contact us and we can arrange for your self-assessment return to be file.

On BBC TV this morning, the Director General of Personal Taxation at HMRC, Ruth Owen, suggested that HMRC may show some leniency for those who have not received their log in codes.  We suggest this is unlikely to be granted in most cases.  HMRC has generally proved inflexible in most matters regarding late submission claiming that the facts are the facts and if tax is due, it should have been dealt with and tax due should have been paid.  We suggest it would only be on very rare occasions that any fine will be waived.  

If you are struggling with you tax, contact us and we will sort it for you next week.