TaxAssist Gives A Piece of Advice

There are 750,000 small business owners missing the January 31 tax deadline that’s why they are urged to file right away to avoid further fines.

“Businesses and individuals who are yet to submit their tax returns need to act fast,” said Lawrence Harrison who runs TaxAssist Accountant in Swindon.

“HMRC will now have issued them with a £100 penalty, claiming approximately £73m of small business owners’ hard earned income, but this is just the tip of the iceberg.”

A penalty of five per cent of any tax outstanding after 30 days is added by HMRC. If it gets over six months old, the rate of late payment penalties increases.

A daily penalty of £10 per day is added if the return is over three months late. This can increase up to £900 and if the delay is more than six months, harsher penalties are applied. Note that these filing penalties are all in addition to the automatic penalty of £100 mentioned above.

“In some circumstances, such as serious family illness or bereavement, HMRC may waive penalties but most other reasons for late filing can be difficult to justify. We have helped many businesses and individuals by completing the appeals process for them,” said Lawrence.

“HMRC has really clamped down on late returns, last year issuing an estimated £1billion in late filing penalties.”

“While we are urging people not to delay in filing, first make absolutely sure you haven’t been issued a tax return in error; for instance your business may have ceased trading and HMRC may not have the changes on record.”

TaxAssist Accountants Swindon is also a local business that provides tax and accountancy services to more than 200 small businesses. 

Posted by Diane Araga, on February 13, 2013 at 9:00 AM