Our business is known for being one of the most experienced when it comes to tax returns Soho has. As tax advisers, it is up to us to aid clients in understanding the implications of their actions. We help everyone to plan ahead and manage their affairs correctly. Not to mention, we do this in a cost effective manner.
An astounding 11.7m 2021-2022 Self Assessment tax returns were filed prior to the midnight 31st January 2023 deadline. This was according to HMRC’s records. Around 861,085 were on deadline day and 36,767 of the returns were during the final hour. However, the estimate is that 600,000 Self Assessment Tax returns did not get in before the deadline.
If you were one of these individuals to miss the filing deadline, you are likely wondering what your next step should be. It could be you first time missing it. In this case, you will want to know how much it’ll cost you. What we are going to do is explain all the important details.
For anyone that missed the deadline, there is an automatic late-filing fixed £100 penalty. You must pay even if there is zero tax to pay for 2021-2022.
In addition, when three months pass, there is an extra £10 penalty per day for as many as 90 days if you still don’t file. After six months, there is another penalty of 5% of the tax due or £300, whatever one is higher. Finally, after 12 months, there is one more 5% or £300 fine payable in addition to the other penalties.
You might be able to appeal the £100 penalty if there is a valid reason. This can include the death of someone close to you. Or, you could have been in hospital or had a serious illness in the weeks leading to the deadline.
Anyone with a valid reason should appeal within 30 days of the issue of a penalty notice. Also, HMRC will consider late appeals in special circumstances. When you receive HMRC’s penalty letter, you have the option of using the appeal form that comes with it. Your other option would be following the instructions in the letter.
What to do now?
Let’s finish by talking about what you can do when you do miss a deadline. File your return ASAP. The more you delay, the higher the penalty. Get all the details you need and complete the filing.
At times, people miss deadlines because their expenses and incomes are more complicated. This isn’t a reason to delay though. What you can do is complete your return using the most reliable and accurate figures available to you. After this, you will have several months to update your returns with precise figures when you get them. You can do this as long as you explain that you are using reliable provisional estimates. Make sure you provide a date where you are going to update your return.
Ask us for advice about tax returns in Soho
At Brian G Lonis & Co, it is a priority for us to remove the stress and confusion from filing. We work with different submissions on a regular basis. Thus, we can offer you practical advice on tax positions and more.
So, if you’d like to work with the top team specialising in tax returns Soho has, contact us. Our services are cost effective and can give you unbeatable peace of mind.