What happens if I haven’t submitted my tax return on time?
If you haven’t submitted a tax return on time then you will be automatically charged £100 on 1st Feb – regardless of whether you owe any tax or not.
The impact of ‘Making Tax Digital‘ is becoming real
HMRC can then issue a ‘determination’, this is an estimated bill that will stand until you send in your actual figures. But you really don’t want to wait too long as there are some hefty penalties.
- If you are 3 months late then you will be charged a ‘daily penalty’ of £10 per day, up to a maximum of £900.
- If you are 6 months late there will be another penalty added of £300 (or 5% of the tax owing if this is greater)
- If you are then 12 months late, you will be charged another £300 (or 5% of the tax owing if this is greater)
- In exceptional circumstances you can be given a penalty of up to 100% of the tax due.
So by being 12 months late you are likely to have received penalties of £1600
If you don’t pay your tax bill on time then there are penalties for that too..
5% of tax if not paid after 30 days
Then another 5% of tax if not paid after 6 months
And you guessed it, another 5% of tax if not paid after 12 months
So by paying 12 months late you will pay penalties of 15% of your tax bill
You will also be charged interest on any unpaid amounts from 1st February
In exceptional circumstance you may be able to appeal against penalties
SO REGISTER TODAY IF YOU WANT ANY CHANCE OF SUBMITTING ON TIME
We are always happy to answer quick questions, even if you’re not a client.