It´s that time of year when accounts departments and small business owners are required to submit their online Self Assessment Tax Return Forms to HMRC for the tax year 2011/2012. The deadline is 31 January 2013 and failure to meet the midnight curfew will result in a fine of up to £1,600. HM Revenue and Customs is getting tough on tax payers and do not accept ignorance as an excuse to file your Self Assessment Tax Return forms late.
Anybody who receives an income that is not taxable through a PAYE scheme is required to file a SATR online and submit it to HMRC before the January deadline. Your alternative option is to complete a paper application and ask HMRC to calculate your tax on your behalf. However, the deadline for paper submissions for the tax year 2011/12 was 31 October 2012.
Who has to submit a Self Assessment Tax Return?
Payees fall into a number of categories and the list is not just limited to small business owners, corporations and property owners. If you are any of the following you will need to register with HMRC´s online service and complete your tax return online at https://www.gov.uk/register-for-self-assessment.
• self employed
• company director
• minister of religion
• income from letting property or land
• you receive other untaxed income or significant capital gains that is not taxed through PAYE
• members of Lloyd’s of London insurance and reinsurance market
• you received income from a trust, settlement, or inheritance
• taxable foreign income
• Aged 65 or above and receive more than £25,400
On 6 April 2011, HM Revenue and Customs issued new rules giving them the power to fine tax payers who submitted their online forms after the 31 January deadline – or that filed their tax return forms incorrectly. The penalties apply whether you are required to pay tax or not and the penalties are harsh:-
• 1 day – 3 months: £100
• 3 months: £10 for every day you fail to pay up to a maximum of 90 days (£900)
• 6 months: In addition to the above you will also incur a further £300 or 5% of the tax due, whichever is the higher
• 12 months: In addition to the above penalties you will be obligated to pay 100% of the tax amount due (double tax)
Incorrect return penalties
HMRC penalties are also incurred if you make a mistake on your SATR or if the tax man suspects you have deliberately presented misleading information. Fines are based on a percentage of the total amount of tax payable and are incurred if:
• HMRC consider a mistake on your tax return form is careless. A fine of 30% of the tax amount due is charged.
• If HMRC find you have deliberately underestimated the amount of tax payable. Penalties range from between 20% to 70% is charged.
• If you are deemed to have fraudulently underestimated the amount of tax payable and attempt to conceal the evidence. Penalties of between 30% and 100% are incurred
Despite their headline policy, HMRC say that if you work with them they may apply some leniency and reduce the fine. If you need help filling in your Self Assessment Tax Return form we offer a professional service with a 24-48 hour turnaround so contact Taxaccolega on 08000 235 234 and speak to one of our specialist accountant. You can also email us at firstname.lastname@example.org and one of our team member will get in touch within 24 hours.