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 returns on the first day they can has tripled in the last five years, as we all try to get more organised.
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. 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, if it is before 31 January 2022.
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.)
Through years, we were reminded of a few of the favourite genuine excuses which HMRC received which included: “I’m too short to reach the post box”, “I had a curse put on me”, “I couldn’t type, because my boiler broke and it was too cold”, “My dog ate the post again”, “I’ve been cruising around the world in my yacht, and only picking up post when I’m on dry land.”
Why does everyone wait until January to do their tax return? The truth is you just don’t need to.
If you need an accountant to help you, we would be delighted to discuss. Contact your local AIMS Accountant today.