Penalties for late submission of a tax return?

Penalties for late submission of a tax return?
As you know, all self-assessment tax returns for 2016/17 must be submitted by Midnight Tuesday 31st January 2017.  This is also the same deadline for paying the tax that you owe.

So, what happens if you make a late submission?

The HMRC is very firm about the deadlines, and they do set financial penalties if the tax return is not submitted on time.  For the first missed deadline, the fine is £100 after this there are more penalties depending on how late you are in making a submission.

Below we have listed a few key dates and fines for late submission:

•    30 days late – 5% of tax due

•    6 months late – 5% of tax or £300, if greater

•    12 months late – 5% of tax or £300, if greater

If the HMRC thinks that the tax payer is deliberately withholding information, then the fines are substantially more.

If you do end up making a late submission and you want to estimate how much you will need to pay, then you can use the HMRC online tool to check - Click here

There are also penalties associated with the late payment of your tax bill, i.e. if you submit your online payment on time but then miss the deadline for making the payment.

All business circumstances are different, and it’s important to speak to your accountant and get some advice if you think you can’t submit your tax return by 31st January.  In many cases, your accountant will be able to help you, and you may find that they can resolve any issues you have to get your tax return submitted.  Often businesses struggle to get all the paperwork together on time, an accountant that has in-house bookkeeping services may be able to take the pressure off you.

If there is a valid reason why you need to submit late then your accountant to advise on how best to liaise with HMRC.  By informing the HMRC as early as possible about something unexpected that has happened which will allow them to decide whether they will fine you or not.

If you want advice on submitting your tax return or you, think that you may have to submit your online tax return late then contact us, and we can help.  Email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 0115 956 9452.
Self-assessment tax return 2016/17
Personal Tax Planning 2016/2017 – Part 1

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