Self
Assessment
Accounts Preparation
Bookkeeping and VAT Returns
Payroll
Tax
Planning
Tax
Investigations
Trusts
33 Bradford Street
Walsall
West Midlands
WS1 3QA
Tel/Fax: 01922 709040 |
Self Assessment
Cycle
Tax
returns are issued shortly after 5 April, the end of the fiscal
year. The fiscal
year runs from 6 April to the following 5 April, so 2010/11 runs from 6
April
2010 to 5 April 2011. Tax returns are issued to all those whom HMRC
consider
need a return including all those who are self employed, company
directors and
higher rate taxpayers. If a taxpayer is not issued with a tax return but
has tax
due they should notify HMRC who may then issue a return.
A taxpayer is now required to file his tax return by one of the following
dates:
1) A paper
return is to be filed by 31 October 2011.
2) A
return filed online is to be filed by 31 January 2012.
If a completed
return is not sent to HMRC on time, an automatic penalty of £100
will be imposed.
The taxpayer does have the option to ask HMRC to compute their tax
liability in
advance of the tax being due in which case the return must be completed
and
filed by 30 September 2011.
Payment
of tax
-
If more than £1,000 tax is payable,
then as well as paying the tax for 2009/10, tax has also to be
paid in advance for the next tax year, 2011/12. 50% is paid by
31.1.2012 and the other 50% by 31.7.2012.
Example
-
Mr A has to pay tax of £1,500 for
2010/11. His payments will be as follows
-
By 31.1.12 - £2,250 – (£1,500 for
10/11 and £750 for 11/12)
-
By 31.7.12 - £750 – (£750 for
11/12)
Penalties
Interest will be charged on any tax paid late. There will also be
interest added
by HMRC when tax overpaid is refunded.
Penalties for missing the tax return deadline:
|
Length of delay
|
Penalty you will have to pay
|
| 1 day late |
A fixed 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. These are as well as the
penalties above. |
-
Example
Mr. C’s tax return is due on 31
January 2012 but HMRC don't receive it until 5 August 2012. It
is over six months late so he will have to pay all of the
following:
-
£100 fixed penalty
- £900 penalty
- this is £10 each day from 1 May to 29 July, when the maximum
90 day penalty is reached.
- £300 or 5 per
cent of the tax due - whichever is the higher.
|