Although the UK tax year runs from 6 April to the following 5 April, there is another which ends 31 January each year – it’s the online filing deadline for self assessment purposes.
The 31 January 2014 is also the date on which any outstanding self assessment tax unpaid for the tax year 2012-13 falls due for payment, together with any payment on account due for 2013-14.
The lead up to the filing deadline is a busy period for tax practitioners, who work hard to complete and file outstanding returns. If by chance you, the reader, have not yet submitted your paperwork to your advisor, now would be a good time to get things together.
There are automatic penalties if you fail to file on time, even if you manage to pay any outstanding tax before the 31 January.
The following penalties applies to self assessment returns that are filed late:
- From day one: taxpayers will be charged a £100 penalty even if they have no tax to pay or have paid any tax due on time.
- From 3 months late: taxpayers will be charged an automatic daily penalty of £10 per day up to a £900 maximum.
- From 6 months late: taxpayers will be charged additional penalties which are the greater of 5% of tax due or £300.
- Over 12 months late: there are additional penalties based on greater of 5% of tax due or £300. In serious cases this penalty may be increased up to 100% of tax due.