Brian G. Lonis & Co is very proud to offer expert financial advice and support to our clients. This can be about a number of topics, including taxes, auditing, bookkeeping, and much more. One area where we excel is offering the best support with tax returns Soho clients can ask for. We can help them to stick to deadlines and avoid interest and charges.
A record for missed returns
January 31st was one of the most important dates for anyone in the UK who had to submit a self assessment tax return. It was the deadline for submissions. Sadly, HMRC is reporting that a record number of people did not meet this deadline. That is a total of over 1.79million or around 15% of the returns that were required.
The new record is the highest number of failed submissions in the entire 24 year history of the system for self submission. More amazingly, it was almost double the 958,000 plus in 2020.
The difficult situation most people are in because of the coronavirus pandemic will be the reason for so many failed submissions. Small businesses and individuals in particular will be having a very tough time. Many will be suffering with having to handle remote working, home schooling, and physical and emotional stress. As a result. finding time to do their tax return may have been very difficult.
What to do now?
There is a silver lining for many of the people and businesses who did not manage to submit their tax return though. In normal circumstances anyone who missed the deadline would have had to pay an automatic £100 penalty. However, HMRC is waiving this so it does not heap more pressure on people. That gives them until the end of February to get everything in order.
There are two things to be aware of here. While the £100 penalty will not be applied, annual interest on any late payments still applies. This is 2.6% per year.
The second thing to note is the new deadline of March 3rd. Individuals and businesses need to pay their tax or agree a payment plan before this date. If they do not, there will be an additional 5% late payment penalty.
Therefore, the best thing to do if you did miss the deadline is to complete your return as soon as possible and pay the tax. If you cannot make a single payment, you can contact HMRC to agree a payment plan. This can split the amount you owe into more manageable monthly payments.
Talk to us about tax returns in Soho
Brian G. Lonis & Co is here to offer our support to anyone who needs it. We know it can be difficult to get everything in order to complete a tax return. This is even harder if you have never had to do one before. You can come to us if you need any help.
So, if you want to work with one of the top experts for tax returns Soho has, contact us. Our services are great value for money and very reliable.