With HM Revenue and Custom's Self-Assessment filing deadline less than two weeks away, millions are still at risk of automatic penalties.
On the 31st of January, individuals who are required to submit a tax return for 2012-13 will face penalties and surcharges if they fail to lodge a return and pay the tax due, however according to HMRC's latest figures up to four of the ten million required to file tax returns have not yet done so.
The financial year 2012-2013 has seen thousands more taxpayers falling into the self-assessment requirement. A large contributing factor to the rise of this figure is the 1.2 million families affected by government alterations to child benefits since the High Income Child Benefit Charge was introduced on 7 January 2013. This in turn has left a greater amount of individuals confused or struggling to define what income needs to be declared and what paperwork to fill out.
The four million, who have not already completed their tax return, are still subject to late penalties. One day late leaves individuals with an instant penalty of £100 which over time can gradually increase. After three months of being late, every day following will give you a fine of £10 per day for a 90 day period. However, there is nothing to fear if tax returns are completed in an organised and timely manner.
Here at PayStream our Tax Team can ensure that your personal tax return is not only completed on time but also accurately, based on the information you provide. For added peace of mind PayStream will always come to the rescue if any problems arise with overdue tax. More information regarding our tax services can be found here.