If you been sent a notice to complete a self-assessment income tax return you have until 31 January every year to get this submitted to HM Revenue & Customs or you will incur late filing penalties depending how long this is outstanding for.
Late Filing Penalties
Up to 3 Months £100.00 if it is one day late.
From 3 Months to 6 Months £10.00 per day
From 6 to 9 months a further £300.00
From 9 to 12 Months a further £300.00
So you can see that for being a year late it will cost you £1,600.00 and this is without paying the tax if you owe any.
These penalties still stand even if you owe no tax and yours tax return goes late.
Paying Your Tax
On settling your tax 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 round.
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.
It is vital that you use the correct information now this may sound strange but the times that I have been supplies information that was not the right information will only result in an tax investigation which will take time and extra money to sort out.
I had an actual case where one on my client left their employment and moved to another employment and upon leaving the company, they issued him a P45 and they should have done. However, they continued to pay this for a further 4 months and he never received another P45 to correct this so when his tax return was prepared it had incorrect figures on it which HMRC contested.
The deadlines that your tax return has to filed are as follows:
On paper 31 October each year
Online 31 January each year
If you file on papers tax return the tax is not due until 31 January each year.