Paper Tax Returns

Tax Return

If you are looking to submit your tax return on papers the 31 October is the last day you can do this. If you have a tax return to submit this will then have to be completed online but you first need to register with HM Revenue & Customs online services first, the other option is to find a local accountant/tax adviser who will have the expertise to do this for you but you need to act quickly as this is a busy time of the year for them.

Paying Your Tax

Although you may be submitting your tax return paper the payment of tax is not due until the 31 January the following year.

On settling your tax that you owe you should receive a payslip with the reference on it this will allocate the payment to your account with HM Revenue & Customs. You can also pay this online using the reference mentioned earlier via internet banking or even set up a direct debit so pay this automatically when the due date come around.

Non-payment of Tax

HM Revenue & Customs are trying to get permission to take any money owed to them via a direct payment method by them taking this out of your account this is different to direct debit.

This is aimed a persistent offender who owed substantial amounts of tax and hold of paying it. They will be contacted about six times and if they still do not make contact the tax office then they may go this route to collect the tax owed.

Some other country’s around Europe already have this in operation so this country will not be the first, but it is not expected to be a harsh as the United State of America the way they collect their tax of persistent offenders.

Penalties

If you pay your tax late you will incur penalties of 5% even though you have submitted your tax return.

If you do not submit your tax return on time  there are daily penalties and this could amount to £1,300.00 if a year late on top of the 5% for paying late and interest on late payments so being late with submitting your tax return and paying your tax can really effect a your cashflow.

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