Don’t miss your next tax deadline
Make sure you file and pay on time!
Taxpayers face penalties and surcharges for failing to file or pay on time.
HMRC widely publicises the penalties for missing its January 31 self-assessment deadline, but you also face charges for missing payments on several other dates in the tax calendar – including self assessment tax payments due 31 July. Here is what you need to know to keep HMRC on side and not incur unwanted costs.
Payments on account
If your last self-assessment tax bill was more than £1,000, HMRC will immediately have asked for some money towards the next year’s return along with another amount owed by July 31. This is known as “payments on account” and it is designed to spread the cost of your next bill.
Calculations for the two payments are based on 50 per cent of your most recent tax bill — but the July payment isn’t as widely publicised as the January deadline, despite interest being charged if you pay late.
HMRC says that taxpayers receive paper statements or digital reminders of what they owe and that 5 per cent interest is added if payments are 28 days late. This rises to 10 per cent after six months and the taxman can also take enforcement action.
VAT
Once your VAT taxable turnover exceeds £85,000 you must register for VAT and complete returns, usually filing and paying every three months Otherwise you face a surcharge. Many people are caught out by this because they have only 30 days to register once the threshold is crossed, regardless of the time of year.
You could accrue interest of between 2 per cent and 10 per cent depending on how many defaults you make in 12 months. And HMRC can apply 10 per cent interest if your tax payment is six months late.
Make sure you monitor your turnover level.
Company taxes
Trading as a limited company you have corporation tax to pay by nine months after the end of your accounting period. The company tax return needs to be filed with HMRC 12 months after the accounts period end.
If your payment is late or incorrect, HMRC can apply an interest rate of 3 per cent.
Payroll
If you employ staff or pay yourself a salary, there may be a tax and national insurance bill. This needs to be filed and paid every month, or quarterly if you usually pay less than £1,500 a month. If you are late or pay the wrong amount, interest can be charged at a daily rate of 2.75 per cent, so keep funds aside to cover this.
So clearly, you need to stay ahead of the game to not incur unnecessary fines or penalties. If you need help with your taxes:
For further advice existing clients email us at support@anytime.uk.com or call 03333 110 230
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