With the end of the month rapidly approaching, a staggering 3.4 million people are still yet to complete their self-assessment tax returns.
With the deadline for outstanding tax payments also due on the same day, the end of the month is shaping up to be very busy for a lot of people. To clear up confusion, we’ve put together this quick guide on potential penalties and solutions.
Fines
Depending on how much you overstep the deadline, you will incur different fines. The initial fine is £100, which will result in daily fines of £10 after three months, reaching a maximum of £900 if you still haven’t completed your tax bill.
If you continue to avoid payments for six months, a penalty of five per cent or £300 will be issued, depending on which number is greater. If you still haven’t got the message by month twelve, an additional five per cent or £300 charge is issued. Combine this with additional penalties over the same time periods for unpaid tax, and you could be facing huge financial troubles.
Don’t worry, it’s not all doom and gloom. If you miss the deadline, you are able to make an appeal, and each case will be individually considered. Provided you have a reasonable excuse for not paying or arranging a payment plan, you may be exempt from penalties.
Getting It Done Hassle-Free
The best way to complete your tax return is to consult professionals, as this will remove any of the confusion and potential slip-ups you may otherwise encounter. There are plenty of online accountants Bath, such as https://www.chippendaleandclark.com/accountants-near-me/bath, who you can consult now.
The HMRC has tried to make the process as smooth as possible, with an app that allows you to pay and confirm your payments all within the space of a minute.
Some things to note regarding scammers: don’t give your HMRC or bank details to anyone but HMRC, even if you think they’re trustworthy. The government website has guides available for potential scams to look out for and other ways to pay if you’re not confident.