What if my tax return is late?
There is only two weeks left until the self-assessment tax return deadline, so if you haven’t sent your self-assessment tax return to HMRC time is running out.
Whilst we cannot stress enough the important of completing your self-assessment tax return before the deadline, unfortunately things happen that mean your tax return may be a little late. HMRC understand this and allow for ‘reasonable excuses’ for your tax return being late. For example if there is bereavement in the family, you have spent unplanned time in hospital, there was a fire/flood or theft or there were issues with HMRC’s online services. You can see a full list of reasonable excuses here.
Back in December, HMRC released a list of some of the more creative excuses people gave for not completing their tax return on time last year. Here are five of our favourites:
- My dog ate my tax return… and all of the reminders
- My child scribbled all over the tax return, so I wasn’t able to send it back
- A wasp in my car caused me to have an accident and my tax return, which was inside, was destroyed
- I work for myself, but a colleague borrowed my tax return to photocopy it and lost it
- I couldn’t complete my tax return because my husband left me and took our accountant with him
What are the penalties if my self-assessment tax return is late?
If you submit your tax return after the deadline, you will incur an instant penalty of £100, which applies even if you have no tax to pay or if the tax due is paid on time after three months. There is then an additional penalty of £10 per day up to a maximum of £900. If your tax return is more than six months late, a further penalty of 5% of tax due or £300 (whichever is greater). Then if your return is more than 12 months late, a further 5% or £300 charge (whichever is greater).
There are also additional penalties for paying the tax owed late which is 5% of the tax unpaid at 30 days, six months and twelve months.
How can Brian Alfred help?
The tax experts at Brian Alfred can help you take the hassle out of completing your tax return and claiming your tax rebate.