HMRC Self-Assessment Tax Penalties – Neglecting Your Tax Can Cost You Thousands
Let’s be honest; nobody gets excited about calculating their HMRC self-assessment tax return.
For those that are required to complete a self-employed tax return, it can be tempting to ignore this deadline. After all, running a business can be demanding and finding the time for non-billable client work can be tough.
Failure to get your return in on time can be costly. Fines are due even if there is no tax to pay. These can quickly mount up and make paying your taxes even more painful (if that is even possible).
The HMRC self-assessment tax return deadline may feel like months away but in the fast paced world that is running a small business it can sneak up on you.
Calculating your return well in advance gives you time to get all your figures together and check your calculations or seek professional assistance from an accountant if your sums do not add up. This time, may end up saving you hundreds if not thousands of pounds in taxes and late fees.
If you are unable to file your return on time, then the HMRC will issue fines. So here are the penalties that you could face if you get to the 1st of February without filing your return
HMRC Self-Assessment Tax Penalties
The self-assessment tax penalties:
- initial £100 fixed penalty
- after three months, additional daily penalties of £10 per day, up to a maximum of £900;
- after six months, a further penalty of 5% of the tax due or £300, whichever is greater; and
- after 12 months, another 5% or £300 charge, whichever is greater.
If you are worried about your accounts or feel you are paying too much. Then why not give us a call on 01945 588105 to find out how we can help you do your accounts for less money and less hassle.