Tax Return Filing Deadline

With very little time left to file 2010/11 Tax returns, here is a timely reminder of the need for urgency!
Previously, if you had no Self-Assessment liability or paid your liability by 31 January you could file your Tax Return late and the £100 late filing penalty would be cancelled. The rules have changed and anyone filing their return late has to pay a minimum penalty of £100. The penalties become larger as the length of delay increases, as follows.
If you are three months late you will be charged a further £10 per additional day, up to £900. If the delay extends to six months the higher of a further £300 or 5% of the liability will be charged. After twelve months yet another £300 or 5% is charged and in “serious” cases HMRC may charge up to 100% of the tax at this stage. Even if you have no liability therefore, filing your Tax return twelve months late will lead to penalties of £1,600.
As you can see, if you have been sent a Tax Return it is now very expensive to ignore it! You must now complete it online by 31 January 2012.
If you think you need to complete a Tax Return but have not been sent one, for example if you have a rental property, are self-employed or in receipt of large amounts of investment income or capital gains you should register with HMRC as soon as possible. The deadline for registering for 2010/11 was 5 October to avoid a £100 penalty. Even if you are late registering it will still be better to get matters resolved before 31 January to avoid also having all of the above late filing penalties imposed retrospectively!
Failure to act by the end of December may mean there is insufficient time to register and file the Return online by 31 January. If you are concerned about whether you need to register for Self-Assessment or have received a Tax Return and need help please do not hesitate to contact us as soon as possible for a free consultation.

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