So you still haven’t submitted your 2015/16 Self Assessment Tax Return?
The deadline date for submitting your on-line self assessment tax return passed approximately six weeks ago, so If you needed to and didn’t submit a tax return, HMRC will impose an automatic fine of £100. Additional financial sanctions will be imposed if you fail to submit your return after a further three, six and twelve months.
If you contact HMRC with a reasonable explanation that is acceptable by them, they might extend the deadline for you to submit your return. If you didn’t realise that you needed to submit a self assessment tax return, (you might receive additional income or are no longer entitled to child benefit) you should contact HMRC to make a voluntary disclosure, which is always viewed more favourably.
However, you should submit your return as a matter of urgency, including a full explanation for the late submission in the appropriate space. In addition to the automatic fine of £100, you could also face additional charges for Interest accrued, plus a 5% surcharge on any tax payable. Once the return has been submitted, if you can’t afford to pay the tax due, you could ask HMRC to consider putting a ‘Time To Pay Plan’ in place.
What if I don’t submit my return?
In addition to the above charges, you face a penalty of £10 per day, up to a maximum of £900. If you are six months late with your return & payment, you then face a financial penalty of £300 or 5% of the total tax liability. If you are more than twelve months late you face a further fine of £300 or a further 5% of the total tax liability. In any event, Interest will also be added for late payment. HMRC can also increase the penalty for a return that is more than twelve months late, if they consider that you have witheld information. The penalty can be up to 200% of the total tax liability if offshore evasion is proven, and can be up to 100% if there are no offshore tax issues.
Furthermore, as a result of failing to file your Self Assessment Tax Return on time, HMRC could launch a tax investigation, and as HMRC have task forces looking at individual’s tax affairs, there is every likelihood of them catching up with you.
Who can help me?
If you appoint Remigius to act as your self assessment tax agent, we will work with you to complete and submit your tax return as quickly as possible. We would liaise with HMRC on your behalf (so you don’t have to), to minimise their fines and surcharges, and would then work closely with you to ensure that all future HMRC deadlines are met.