Running your own company can be very daunting when it comes to undertaking the paperwork and heavy admin duties that come hand in hand with being your own boss.
However, it is this responsibility that can sometimes be pushed aside or left until the last minute. It is this last minute race to submit annual self-assessment tax returns that can lead to missed deadlines and additional late penalty fees. In early 2013, HMRC revenue and customs claimed to see 'over 730,000 companies handing in late tax returns for the 2011/12 financial tax year'.
So what penalties can you incur if you are late in completing your self-assessment tax return on time?
- 1 day late: Instant penalty of £100
- After 3 months late: every following day £10 per day for a maximum of 90 days
- After 6 months late: an extra £300 added or 5% of the tax due
- After 12 months: an additional £300 added or 5% of the tax due
With tax penalties running at such a high cost and the risk of missing deadlines for not filling in the hefty paperwork correctly, it can be advantageous to engage the help of the professionals. Ensuring you are compliant, when you have strict regulations surrounding the IR35, can be a daunting task. It is therefore, always essential to ensure you have a trustworthy credible and complaint accountant provider, such as PayStream.
PayStream's Tax Team can ensure you're returns are completed correctly and on time to avoid HMRC penalties. Not only that, they will also chase any overpaid tax you may be due and give advance warnings of any potential tax liabilities, leaving you with complete peace of mind. Visit here for more information on how our Tax Team can help you.