One week countdown to tax deadline

25 January 2017

There is now less than one week left until the 31 January self-assessment tax return deadline for 2015-16.

Assisting HMRC, the media is warning tax payers not to leave completing their tax return until the last minute as mistakes can results in penalties if HMRC considers that not enough care has been taken. Late returns will mean a £100 fixed penalty with further filing fines kicking in on 1 May 2017 when HMRC will charge taxpayers with overdue tax returns £10 per day.

The additional £10 per day penalty can be charged for a maximum of 90 days and so anyone who still has a return outstanding at the end of July will have accumulated fines of £1,000 in total. They are also likely to incur a further penalty of at least £300 if the return is not filed by 31 July 2016.

The penalties for late tax returns are:

• an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time
• after three months, additional daily penalties of £10 per day, up to a maximum of £900
• after six months, a further penalty of 5% of the tax due or £300, whichever is greater
• after 12 months, another 5% or £300 charge, whichever is greater.

There are also additional penalties for paying late of 5% of the tax unpaid at 30 days, six months and 12 months.

And remember lame excuses will not be accepted, however fines can be appealed against if there is a reasonable excuse for filing a return late.