Do you have a habit of addressing your taxes at the last minute? You need to change your approach and plan ahead. Delaying tax preparations not only increases the likelihood of mistakes in your tax return but also raises the risk of missing deadlines and facing penalties. This is why tax advisors always talk about the importance of timely and accurate tax management.
If you’re uncertain about whether or not you need to file a tax return for a specific year, you can talk to tax advisors in London. HMRC also provides an online tool you can use. This tool guides you in determining whether you’re obligated to complete a self-assessment tax return and also offers instructions on withdrawing a return if you find out it’s not required.
Missing the tax return deadline – What are the penalties?
If you file your tax return after the deadline but within three months of it, you’ll be fined £100. This penalty increases for delays beyond several months or for late payment of your tax bill. Interest is likewise charged on late payments.
To avoid these penalties, it’s crucial to file and pay your taxes on time. Tax advisors in London suggest using HMRC’s calculator to estimate penalties for self-assessment tax returns filed more than three months late and for late tax payments.
Can you appeal a penalty?
You can appeal against a penalty if you have a valid reason. Appeals are considered for various issues, including inaccurate returns, late payments, and delayed tax returns. Valid reasons might include the following:
- The death of a partner or a close relative shortly before the tax deadline
- An unexpected stay in the hospital
- Serious or life-threatening illness
- Failure of software or computer systems during filing or payment
Deadlines to remember
The deadlines for tax returns are October 31st for paper submissions and January 31st for online filings. Payment deadlines are on or before January 31st, following the end of the tax year.
Confused by tax returns? Avoid missing crucial details by consulting with tax advisors in London. At Allenby Consultants, we simplify your tax process by managing your accounting and bookkeeping effectively. We also provide tax-related services to ease your burden. For a detailed consultation with our experts, call 0208 914 8887.
