By David Manning - Manager, Blockchain & Crypto Team While the title might seem dramatic, it is certainly the sentiment you will find across the array…
PKF Francis Clark is encouraging clients to deal with their tax returns imminently, ahead of the looming 31 January deadline.
With the countdown in full swing and the deadline for submitting paper returns now in the past, the only option left is to complete your return online, and PKF Francis Clark is warning that if it is your first time filling in a Self Assessment Return, it could take up to 20 working days to obtain the information needed from HMRC.
Recent figures show that more than 10,000 tax returns were submitted online in total over Christmas Day and Boxing Day. Have you submitted yours?
Five things you should know:
- Who needs to fill in a tax return? https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return
- Even if you are not on HMRC’s list (above), you must file a return if HMRC has sent you a notice asking you to do so, even if you have no tax to pay
- What needs to be declared? Your income and gains from all sources worldwide (unless you qualify to use the remittance basis)
- What paper work is needed? You will need your form P60 and P11D, or receipts showing income and expenditure if you are self-employed, as well as dividend vouchers and bank interest certificates – basically you need to keep any supporting documents which back up the entries in your return
- What are the penalties? You will be charged £100 if your tax return is even a day late. Other penalties can be charged for extended lateness, as shown in the table below:
|Missed filing deadline||£100|
|Three months late||Daily penalty of £10 per day for up to 90 days (max £900)|
|Six months late||5% of tax due or £300, if greater|
|12 months late||5% or £300 if greater, unless the taxpayer is held to be deliberately withholding information that would enable HMRC to assess the tax due|
Penalties also apply if tax is shown as due and is paid late.
HMRC has recently revealed details of a proposed new penalties system for late submissions and payments under its Making Tax Digital (MTD) initiative, confirming its plans to pursue a points-based model.
More information on MTD, which comes into effect from April 2019 for VAT reporting can be found here.
Lisa Macpherson, Head of Tax Technical at PKF Francis Clark said:
“It’s all too easy to keep putting it off, so – as HMRC has been saying in its latest campaign, ‘don’t let your tax return peck away at you’.
“If you are experiencing difficulties in completing or submitting your returns, please seek professional advice without delay. PKF Francis Clark’s dedicated team of experts would be happy to assist”.