Have you nearly been late submitting your tax before? If you have done it once you probably haven’t done it again in a hurry! Figures show the number of people filing their tax return on the first day has tripled in the last five years. The next return is for 6 April 2020 to 5 April 2021 and accounts for your income, even if you were hit by the economic effects of Covid. There are good reasons to submit early, your chances of making mistakes are lower, there is more time to plan your tax bill, receive possible tax rebates earlier, and of course, you would avoid any penalties.
Submitting your tax return late can mean the following:
- If you are late, even for one day, there is a penalty of £100.
- Late by up to three months: £10 extra for each day late and capped at 90 days.
- Late by up to six months: an extra £300 or 5% of the total tax due (whichever is the highest)
- Late by up to twelve months: an extra £300 of 5% of the total tax due (whichever is the highest)
If you haven’t done it yet, there is no reason not to submit your tax return as soon as possible – it’s up to you when you pay any tax due as long as it is before 31 January 2022. If you currently don’t have an accountant, you might find it helpful to have someone else prepare your tax return for you. Please get in touch with your local AIMS Accountant to find out more information.