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HMRC could receive £700 million of tax payer’s money in the next year – will you be affected?

 

Posted on 24 May 2018

As HMRC strive to tackle non-compliance amongst tax payers, it is more important than ever that you, as a taxpayer, adhere to the imposed deadlines and guidelines governing self- assessment tax returns.

Already in place is a penalty regime which affects any taxpayers who miss (or indeed overrun) the January filling deadline for self-assessment tax returns.

The system sees individuals charged £10 a day from 1 May for late self-assessment returns that are three months late – (doesn’t sound much does it?) up to a maximum of 90 days. On top of this, an additional £100 fixed penalty for missing the deadline in the first place is charged.

This potentially equates to a hefty £1,000 penalty fine (now you’re listening), so if your 2016/17 tax return is late you need to take action now to restrict these penalties.

In addition to this there are also tax based penalties for tax returns which are 6 months and 12 months late, with HMRC issuing penalties for 5% of the tax due, subject to a minimum £300 charge.

To illustrate, this year alone, over 700,000 taxpayers missed the filing deadline. If the same number of taxpayers are to miss the same deadline next year, HMRC could be in receipt of over £700 million. That’s £700 million of taxpayers’ hard-earned cash.

If you are concerned about your own self-assessment tax returns, or would like any help or guidance for our team of dedicated Tax experts, please don’t hesitate to get in touch.

Whether your tax needs are immediate or longer-term, we have the capabilities to deploy specialist tax, financial services and business planning expertise, gaining a thorough insight into your circumstances and needs.

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