Missed the deadline for filing your self-assessment tax returns? Don’t worry; it happens to many people. That’s why our tax advisors have prepared a detailed guide on things to do after you miss the deadline.
What Happens When You Miss the Deadline
Most people prefer filing self-assessment tax returns online because it’s convenient, faster and offers more time than paper returns. The deadline for online tax returns is 31 January, but it’s 31 October for paper returns. However, if you miss the deadlineeven after opting for online filing, HMRC charges £100 as a penalty fine. It’s an automatic fine that applies to late filers no matter if they owe tax or not. HMRC may also charge £10 per day for the next 90 days if you don’t file the tax returns, increasing the penalty to £1000.
If you file your tax returns after six months, there’ll be an extra fine of £300 (or 5% of the tax owing). After 12 months, another £300 fine will be added to your already imposed penalties.
Here’s what to do if you’ve missed the deadline:
Appeal Your Penalty
Those who have a valid reason can appeal their late-filing penalty. These valid reasons could include the death of your or your spouse’s close relative, serious illness, hospitalisation, delays caused by disability, an issue with HMRC online services, software or computer malfunction when filing, etc. Make sure you don’t give any invalid excuses, such as you couldn’t use the online system, didn’t know about the deadline, etc., because it can make things more difficult for you.
Appeal your penalty within 30 days of receiving the penalty notice and ensure that your tax return is filed within 14 days of the deadline to avoid any problems in your appeal.
Complete Your Tax Return Quickly
Instead of panicking after missing the deadline, get done with your tax return ASAP and gather all the information you need. The more you delay, the more penalty you’ll have to pay. If you’re having trouble filing your tax returns, Hire a professional for better outcomes. They have enough experience to get everything done as soon as possible without errors.
Add Estimated Figures
Having complex income or expenses can take more time than usual, resulting in missing the deadline. Instead of waiting further, file estimated figures based on your previous records. HMRC offers enough time to amend your tax returns so you can update them according to the actual figures after figuring out your income and expenses. As long as your figures are based on reliable estimates, HMRC will allow you to recalculate your taxes. When filling out your tax return form, make sure you tick the box that says you’re using estimated figures and communicate a date for amendments.
Completing and filing tax returns requires a lot of effort, and missing the deadline is another major problem. Hiring our tax specialists will make things a lot easier. At IBISS & CO.,we offer self-assessment tax return consultancy and other accounting services in London. Call us to get started.