Is Your Tax Return Still Outstanding?

The January 31st deadline has come and gone. Well done if you have got your return submitted in time. As usual we managed to submit the returns of every client who sent their records to us, even if it was at the last minute! If you’ve missed the deadline you might be telling yourself that at least it’s only a £100 fine, and the pressure is now off. You would however be wrong!
In addition to interest, HMRC will charge you an additional 5% of the tax owing at the end of February. Then after April they will add £10 per day if the tax return is still outstanding. Then after another three  months a further 5% of the tax due or £300, whichever is higher. It all adds up to a tidy sum! And to add to this the time HMRC have to launch an enquiry into your return gets longer and, we suspect, your chance of being investigated grows. Dealing with that can be time-consuming and expensive even if you prove nothing is amiss.
So, if you have missed the deadline there remains some urgency to file your return… and to do so in time next year.