With the new year fast approaching, it is time to start thinking about submitting your tax return for 2019/20.
Considering the detrimental effect of coronavirus on the business world, it is understandable that this process may have been delayed, or pushed to the back of your mind.
With that being said, HM Revenue and Customs (HMRC) must receive your tax return and any money you owe by the deadline (midnight on the 31st of January), or penalties will apply!
Why not be proactive in completing your tax return ASAP, protecting your business from any preventable financial burdens down the line?
The deadline for filing a paper return for 2019/20 has passed – paper returns had to be with HMRC by 31 October 2020.
If you have missed this deadline, you can avoid a penalty by filing your tax return online by 31 January 2020.
In undergoing this process, you must use your records (e.g. bank statements or receipts) to fill in your tax return correctly.
HMRC will calculate what you owe based on what you report/what Income Tax band you fall into.
If you miss the deadline, you will be subject to financial penalties.
You’ll get a penalty of £100 if your tax return is up to 3 months late.
You’ll have to pay more than this it is any later. You will also be charged interest on late payments.
You can estimate your penalty for Self-Assessment tax returns that are more than 3 months late, as well as interest on late payments.
Remember, the penalty applies irrespective of whether you owe any tax! It is a fine for not filling in your tax return.
It is also important to note that if you file a paper return after 31 October 2020, you will suffer a £100 late filing penalty, even if the return is filed by the online filing deadline of 31 January 2020.
If you require any advice about filing you self-assessment tax return online, then we encourage you to call our team on 01254 589799, or email us at firstname.lastname@example.org