Self Assessment Update

On Friday 1st February, HMRC announced that over 93% of taxpayers filed their self-assessment tax returns on time and before the 31st January deadline.

Over 11.5m taxpayers were required to file their 2017/18 tax returns by 11:59pm on the 31st, however, 700,000 tax payers missed the deadline. 

Nearly 740,000 returns were submitted on the deadline day with the peak filing hour being between 4pm and 5pm when over 60,000 returns with filed! 

Any taxpayer who has missed the deadline should contact HMRC. 

The department will treat those with genuine excuses leniently, as it focuses penalties on those who persistently fail to complete their tax returns and deliberate tax evaders. 

The excuse must be genuine and HMRC may ask for evidence.

The penalties for late tax returns are:
•    An initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time;
•    After 3 months, additional daily penalties of £10 per day, up to a maximum of £900;
•    After 6 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.
•    There are also additional penalties for paying late of 5% of the tax unpaid at 30 days, 6 months and 12 months.

As the 2017/18 tax year comes to a close, you can take a breather. However, it is not going to be long until you start preparing for next years' returns. 

Why not alleviate the stress of your 2018/19 tax return by contacting your local Moore office to see how our personal tax accountants can help you prepare your accounts and make some potential tax savings?

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