Self-Assessment Tax Return
Preparing and submitting your Self-Assessment Tax Return is not the most enjoyable of tasks on your list and it’s easy to keep putting it to one side. It’s what accountants call compliance, basically if you have received a notice to complete a return or you have an obligation to report income then the return should be completed and filed on time with HMRC.
Tax returns are usually required if you fall into one of these categories
- Self employed
- Higher paid employee with benefits
- Have multiple sources of income
- Are of pensionable age with investment income
- Company directors
- Have capital gains to report
Failure to comply with the ever changing legislation can result in significant penalties (please see below).
Penalties for missing the tax return deadline
- 1 day late a fixed penalty of £100. This applies even if you have no tax to pay or have paid the tax you owe.
- 3 months - £10 for each following day – up to a 90 day maximum of £900. This is as well as the fixed penalty.
- 6 months - £300 or 5% of the tax due, whichever is the higher. This is as well as the penalties above.
- 12 months - £300 of 5% of the tax due, whichever is the higher. In serious cases you may be asked to pay up to 100% of the tax due instead. These are as well as the penalties above.
If this is not bad enough if you don’t send your return by the deadline, HMRC may estimate the tax you owe. You will also have to pay interest from the date the tax should have been paid. You will also have to pay any penalties due for missing the tax return deadline.
We encourage early completion of your tax return and will request your papers and information after the 5th April. We will remind you at monthly intervals.
By instructing Eljay & Co to prepare your self- assessment return, you can save yourself the worry of meeting the deadlines and have peace of mind that your tax affairs are up to date. Of course you may be in the fortunate position of having tax owing back to you, even more reason for early completion, or it is a good idea to know how much tax is due to be paid so that you can plan ahead so that you can pay or make arrangements by the 31st January. This frees up your time allowing you to concentrate on the more important factors in your business.
Deadlines for submission of self assessment return
- 31 October: all paper filed returns
- 31 January: online returns
Almost without exception we file all returns unless it is a very old return that cannot be filed online.