If you don’t work with the best tax accountants in London, you might miss a tax deadline. Even if you work hard to manage your accounts, prepare your taxes, and try to meet deadlines, anything unexpected can happen. This means it can become almost impossible to pay your taxes on time.
HMRC, unfortunately, doesn’t allow any tax extensions. You will also have to pay heavy fines and penalties if you fail to file your taxes timely. However, you can avoid paying fines and penalties by submitting an appeal. Let’s take a look at how this works.
What Are The Tax Deadlines?
First, you need to know the deadline for filing timely. For individuals, the tax filing deadlines are 31st October ( income tax filing on paper) and 31st January (income tax filing online). This means filing your taxes online buys you three extra months.
The Self Assessment tax return deadline is 31st January each year. For 2021-2022 taxes, you would have to file your tax return by 31st January 2023.
If you file online, you will know your tax, which will be automatically calculated as you start filling out the online form. The system will remove all irrelevant sections, which means the process becomes faster. You’ll instantly get the online information with your reference number. In case HMRC owes you any money, you will receive it faster.
What Happens When You Miss The Deadline?
HMRC’s penalties for filing taxes late are harsh. If you miss the deadline, there’s a fine of £100 regardless of whether or not you owe anything. The amount becomes even harsher as more time starts passing by.
What Are the Fines?
By 1st March, you will be fined 5% of the amount you owe. On 1st August, you will be fined an additional 5%. You would also have to pay a 3% interest charge on the entire amount, which includes your tax and the penalties.
When Can You Appeal?
As we mentioned, HMRC doesn’t allow any tax extensions, but an appeal is something you can go for when you miss your tax deadline. The fines you’d have to pay are automatic, and once you miss the deadline, they’re automatically added to the amount you owe.
However, you can appeal to HMRC if you have a reasonable and valid excuse for missing the deadline. Plus—yes, you’re right—there is also a deadline for appealing. Once your first penalty is issued, you have 30 days to appeal. Otherwise, there’s nothing else you can do.
Reasonable Excuse
A valid and reasonable excuse can be your partner or close relative dying before the deadline, an expected hospital visit due to which you missed the deadline, a severe or life-threatening illness/disease, your internet or computer failing right before you filed the online return, or HMRC’s digital portal wouldn’t load. Reasons similar to these may work.
Filing an Appeal
At IBISS & CO. we have the best tax accountants and advisors in London and Walsall on our team. We can help you file your taxes on time or file an appeal in case you miss the deadline. For a tax consultation with our corporate tax advisor, you can reach out to us today.
