According to HMRC’s figures, there were around 730,000 people who missed the 31st January personal tax deadline.
As a result, they will have been fined £100 – this is quite an additional source of income for HMRC, however it is an additional cost that is unnecessary.
The rules on penalties changed last year, now the fines aren’t related to the tax due so we could find the situation where people are due a repayment but receive a fine for being late in submitting this!
The tax year ends on 5th April each year, and the returns can be submitted after this date as soon as all the information is available.
Rather than wait until the last minute, it is always better to complete the return early – the tax is not payable any earlier, and if the business profits have reduced in the last year it may be possible to claim a reduction in the 31st July payment on account.
Please do refer anyone you know who missed the deadline to me, at the end of February there is a 5% surcharge on the tax outstanding so it is important to act now to avoid this.
I offer a no charge initial meeting, so that we can discuss the opportunities to help people pay less tax and avoid fines.