Deadlines, deadlines, deadlines! There is nothing like a good
deadline to get you motivated, especially when it comes to that glorious
time of year when taxes are due. Still, as we all get busy with our
daily lives and other obligations, that 31 January deadline can creep up
on us and leave us scrambling to complete them on time.
By mid-January an astonishing half a million people will not have
filed their taxes with just two weeks left to do so. The result: many
late filings and post-deadline tax returns. So, what can you expect if
your tax return does not get there in time?
Over with…
Okay, chances are if you file your tax return after the deadline your
life will not be over with. There will be no execution mob that comes
after you, but there may be something much worse – the government.
The government has not, in recent decades especially, taken lightly
to the idea of missed or late tax returns. In 1992, it began to reassess
the laws and provide individuals and businesses with stiffer penalties
for not paying their taxes on time.
Penalties
The penalties for filing your tax return late can be high. Firstly,
there is an initial penalty of £100. You will then be charged £10 a day
for the first three months up to the date that you submit your return,
up to a maximum of £900. So, for example, if you file your tax return
on the 12 February, you will incur a fine of £220 (a £100 initial
penalty plus £120 for the 12 days you were late). If six months pass and
you still haven’t got around to filing, you will either be fined 5% of
the tax due or receive an extra £300 fine. And if a whole year goes by
you will receive the same fine again. You may also be asked to pay your
tax bill in full on top of all of the fines outlines above – which is
something that no business wants to end up having to face.
Seek help
With so many complications and filing issues, it would be better to
avoid the late penalties and get on track with filing your return on
time. Easier said the done! Rather than trying to take on the task all
on your own, consider using the resources around you. Specifically,
those in the financial fields well versed in the laws can help.
Accountants are individuals who understand taxes and will be able to
help you reach your end goal of filing more easily. Consider them as a
great resource to avoid the penalties that late filing face.
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