East Anglia–based members of the UK200Group of independent chartered accountants and lawyers are advising people who are yet to submit their tax returns to do so soon to avoid heavy penalties.
The deadline for self-assessment tax returns passed on the 31 January 2016 and HM Revenue and Customs (HMRC) has already reported that around 870,000 people failed to submit their return on time.
Those who have not submitted their tax return will have more than likely already received an automatic £100 fine, unless they have been able to give a valid reason, such as a death in their close family or a serious illness or injury.
However, those still yet to submit could face even larger penalties if they delay any longer. Taxpayers can expect to pay £10 a day for up to 90 days if their return is three months late, totalling a maximum of £900
Six months late and they may pay a fine of £300 or five per cent of the tax due, whichever is the higher.
If left for 12 months or longer a similar penalty is applied, but if HMRC can prove that a taxpayer has withheld information a fine equal to either 70 per cent or 100 per cent of the tax due may be issued, depending on whether the concealment was intentional or not.
James Abbott, President of the UK200Group, said: “If you haven’t submitted your tax return yet, then it is imperative that you do so soon. You may well have already been notified of a fine, but waiting and hoping for it to go away will not work.
“The longer you leave your tax return submission the greater the fine you may face. If you are unsure about how to file your tax return then seeking the assistance of an accountant is imperative and could save you lots of money in the long run.”
The UK200Group has members across East Anglia, , including George Hay, Moore Thompson, Price Bailey, Lambert Chapman, Taylor, Viney and Marlow, Griffin Chapman and Edmund Carr, who provide a wide-range of services, including assistance with tax planning and establishing limited companies, to a selection of businesses and individuals in their area.