If you have been issued with a notice to prepare a self-assessment tax return for the year ended 5th April 2013, the deadline for filling your online return for income received in that year is 31 January 2014.
The penalties for the late filing of the self-assessment tax return are as follows:
- One day late= A fixed penalty of £100, which applies even if you have no tax to pay or have paid the tax you owe.
- Three months late= £10 for each following day, up to a 90 day maximum of £900. This is in addition to the fixed penalty above.
- Six months late= £300 or 5% of the tax due, whichever is the higher. This is in addition to the penalties above.
- Twelve months late= £300 or 5% of the tax due, whichever is the higher. In serious cases you may be asked to pay up to 100% of the tax due instead. In some cases the penalties can be even higher than this. These are in addition to the penalties above.
Also, if you are late in paying the outstanding tax liability you will be charged interest on the unpaid amount until the debt is settled. The current rate of interest for late payment is 3%.
To avoid the penalties and interest you need to act now. If you are worried or don’t think that you will be able to meet the deadline contact one of our taxation compliance specialist at e-ccountant.