What To Do When You Missed Your Tax Deadline

Posted 06 Aug 15

Every business owner knows that there are two sides of a company.

One that a client should see - a smiling face of a staff member offering the best service imaginable in a friendly and professional environment; and the one that can be described as “behind-the-stage” - where the deadlines are missed, the accounts complicated and the revenue ambiguous.

One of the problems a lot of business owners experience is missing the tax deadline. In this article we will explain what to expect and what to do if it happens to you.

Do I Need to Fill in a Tax Return?

If you are:

self-employed, or a member of a partnership

a company owner

earning more than £10,000 from savings and investments

earning more than £2,500 from untaxed savings and investments

earning more than £10,000 from property

earning more than £2,500 from property (after deducting all expenses)

have an overseas income

exceeding a £100,000 annual income

Then, the answer is yes. In the majority of cases, HMRC will send a letter to you reminding you to fill a tax return, however, not receiving the letter doesn’t mean you will avoid the penalty if you fail to register for self assessment by the set deadline.

If you are unsure if you need to fill your tax return, contact us at Tawanda Accountants and we will provide you with all the information you need to avoid any fines from HMRC.

What is the penalty if I miss my tax return deadline?

If you are even one day late completing your tax return, you will be subjected to an automatic £100 penalty. The penalty raises the more time you take filing your tax return, plus HMRC can add interest to any overdue tax.

In case of a missed deadline, HMRC might estimate the tax you owe. If you get an estimate, you are required to pay it (plus penalties and any interest), but you might be able to change the estimate by filing your tax return.

Running a company can be an extremely exhausting and difficult experience, so its important to find a support you need to handle all the tasks successfully. The best way to lower your financial risks and keep your life and work balanced is by investing in a professional accountant who can keep a track of your finances for you.

At Tawanda Accountants we make sure our clients never miss the deadline (31 January following the end of the tax year) and that their records are kept safe and up-to-date. If you can’t afford to pay the tax you owe, contact us and we will guide you through the options you have and help you avoid any further penalties and interest.

About Us

As a leading UK accounting firm and expert business consultancy, Tawanda Accountants carry out scrupulous accounting and provide payroll services and procedures for small businesses, individuals and business start ups.