Tax return Deadline
We are almost getting to the end of the 23/24 tax return season (deadline day is 31st January 2025 – midnight). The above deadline is for online submission only, paper submission was on 31st October 2023. well done if you have filed your accounts early. If you have not done so, time is ticking fast, it’s time to ACT now, don’t be a victim of HMRC’s automatic £100 fine.
You will need to complete a tax return if you are:
· self-employed as a ‘sole trader’ and earned more than £1,000
· a partner in a business partnership
· have
- Untaxed income over £ 2500
- Money from renting out a property
- Tips and commission
- Income from savings, investments and dividends
- Foreign income
- Or in receipt of HMRC tax return notice
· Your income (or your partner’s) was over £60,000 and one of you claimed Child Benefit
· A company director (unless it’s an unpaid position for a non-profit organisation like charity)
you tax return should cover the period 6th April 2023 to 5th April 2024.
you do not need to send in a tax return if you only income is from employment and pension as tax would have been deducted on source.
To avoid HMRC penalty, here are some of the common
· No gateway accounts – you must have an active gateway accounts to file online
· Make sure you collate all income sources (e.g. P60, P11Ds, income and expense accounts from all trading activities, records of interest received etc)
· Start as early as possible – don’t leave till the last minute
· Remember to press the submit button and print the confirmation screen
· Under declaring income or gains
· Over claiming tax rebate – HMRC checks these especially for CIS contractors
· Forgetting to include chary donations e.g. gift to churches or local charities
· Submit a tax return even if you do not have any tax to pay
· Ensure your expense are reasonable see
Failure to submit your tax return incurs the following penalties
· One day late: You’ll automatically receive a £100 fine. This applies even if you have no tax to pay or have paid the tax you owe.
· Three months late: A fine of £10 for each following day up to 90 days maximum of £900. This is in addition to the fixed penalty above, so the overall fine could be £1,000 (£100+£900).
· Six months late: A fine of either £300 or 5% of the tax due, whichever is the higher. This will apply on top of the penalties above.
· 12 months late: Another £300 fine or 5% of the tax due, whichever is the higher, will be added to your bill on top of the penalties above.
In serious cases, if you’re more than 12 months late with your tax return, you may be asked to pay up to 100% of the tax due as well as any tax you owe, doubling your payment.
Should you need any help with your tax return please do not hesitate to contact us at www.skyrockaccountants.co.uk 079 383 07 589 / www.facebook.com/skyrockaccountants
