Self Assesment

Q. What is Self Assessment?

HM Revenue & Customs sends out approximately 9 million tax returns to individuals after the end of each tax year on 5th April. It is the individual’s responsibility to ensure that the tax return is completed accurately and returned to HM Revenue & Customs before the statutory deadlines.

Q. What are the statutory self assessment filing and payment deadlines?

A. If you wish to file a paper return, you must do so by 31 October. If you file online, you get longer to file - the deadline is 31 January.

Primus Accountancy undertake to submit all of their clients self assessment tax returns on-line, giving our clients more time to ensure that their tax filing obligations are met.

You must pay any tax liability due by 31st January following the end of the tax year. For example, for the tax year 2013-14 (ending on 5th April 2014) you must pay any tax due by 31st January 2015. The payment deadline is the same whether you file on paper or online.

You'll need to pay one or both of the following:

You'll usually receive a 'Self Assessment Statement' that shows the amount due. However, as a client of Primus Accountancy we will calculate your tax liability and inform you in good time of the amount due.

If you have been asked to make payments on account the deadline for making your second payment on account is 31st July, for example on 31st July 2014, you will need to make your second payment on account towards your 2013-14 tax liability

Q. What penalties will I have to pay for missing the filing deadline?

Length of delay Penalty you will have to pay
1 day late A penalty of £100. This applies even if you have no tax to pay or have paid the tax you owe.
3 months late £10 for each following day - up to a 90 day maximum of £900. This is as well as the fixed penalty above.
6 months late £300 or 5% of the tax due, whichever is the higher. This is as well as the penalties above.
12 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 as well as the penalties above.

Q. What counts as a reasonable excuse for filing your on line return late?

A. ‘reasonable excuse’ is when some unforeseeable and exceptional event beyond your control has prevented you from filing your return on time. For example:

These are just examples, and can only apply if the problem actually prevented you from filing your return on time when you otherwise would have done. Each case is unique and will be considered on its own merits.

HMRC will not accept an excuse where you haven’t made a reasonable effort to meet the deadline. Examples would include:

Q. Will I be charged interest and penalties for late payment of my tax liability?

A. If you pay your tax late HMRC will charge interest from the date the tax was due until your payment is received.

If you still haven't paid your balancing payment (due on the 31st January) by 28th February, you may be charged a 5% additional charge, called a surcharge penalty, on top of the amount you still owe. This is in addition to any interest you've been asked to pay.

If you still haven't paid all of the tax due on 31st January by 31st July, you may be charged a second 5% surcharge on top of the amount you still owe.

Q. How can I reduce the risk of paying tax late and becoming liable to the penalties mentioned above?

A. The sooner your tax return information is sent in to us, the earlier we can complete the calculation and advise you of the amount you will have to pay. This way there will be sufficient time for us to prepare the return, send it to you for signature and also allow time for you to raise the funds necessary to meet the liabilities by the deadline. Our engagement letter sets out when we require your information by in order to guarantee delivery.