From 1 May, HMRC will apply fines of £10 per day if you haven’t yet submitted your 5 April 2014 Self-Assessment Tax Return.
Will this affect you? If so, we can help – please contact us on 0151 380 3800 or by email at [email protected].
How much could you be fined?
The deadline for submitting your 5 April 2014 Self-Assessment Tax Return was 31 January 2015. If you missed the deadline, you were immediately fined £100 (whether you know it or not).
While this is costly enough, the fines will now increase rapidly as HMRC will charge a daily penalty of £10 every day for the 90 days from 1 May 2015. Therefore, if you haven’t submitted by 29 July, the fine will be £1,000 (ie the initial £100 plus 90 days x £10).
If you haven’t submitted by 31 July 2014, an additional fine will be applied. This will be the larger of £300 or 5% of the tax due. Therefore, the total fine will be at least £1,300.
If you haven’t submitted by 31 January 2016, there will be yet another fine. This will again be the larger of £300 or 5% of the tax due. By this point, the total fine will be at least £1,600.
What excuses will HMRC accept for a late return?
If you have a genuine excuse, HMRC may let you off without a fine. However, the fine must be “reasonable”. “The dog ate it” just won’t work. For more information on what HMRC may accept as a reasonable excuse can be found in our list of the Top 10 Tax Return Excuses or you can watch our video on the subject here.
What should you do if you’re affected?
If you are affected, we can help you complete and submit your Self-Assessment Tax Return and avoid further fines. This will save you money and also stop you worrying.
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If you would like to arrange a free meeting with a Liverpool accountant to discuss this, either at our office or at your premises, please give us a ring on 0151 380 3800 or drop us an email at [email protected].
Added by Jon Davies