Accounting Blog

Avoiding self assessment late filing penalties

With around 11 million people expected to submit self assessment returns this tax year, it is vital that small business owners are made aware of relevant deadlines and the subsequent penalties for late submissions, which could prove very costly to their organisations due to added interest on both unpaid tax and unpaid penalties.

HMRC’s deadline for returning paper-based self assessment tax returns was 31 October and individuals or businesses returning late paper forms will now be fined £100 for failing to meet the deadline.  This penalty will be issued and not reduced in any way, even if it is subsequently calculated that there is no tax payable for 2013/14 or if the tax charged is then paid on time.  It may even increase, the longer the delay in sending in the tax return by post.

One way to avoid the self assessment late filing penalty is to switch from using a paper-based system of return to an online return.  Primus Accountancy uses this type of submission for all our clients, as we find it fast, reliable and accurate.  It also offers one distinct advantage over traditional submissions, in that the deadline is extended to 31 January 2015.

HMRC regulations state that individuals or businesses who have traditionally submitted paper self assessment tax returns in the past but have failed to do so on time for 2013/14, may choose to switch instead to online filing, thereby avoiding any late filing penalty.

The current penalties for both late filing of tax returns and late payment are given below.  The clock is ticking quickly towards the final 31 January deadline, so any business owners who have not yet submitted a self assessment return should contact the Primus Accountancy team today on 0845 671 1105, to avoid any potential costly delays.



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