More people submitted their self-assessment tax returns on time in 2018 when compared to 2017. However, this doesn't mean the tax-return for the year 2016/2017 has been smooth sailing. There are still three-quarter of a million people who missed the deadline for tax returns.
HMRC reported, almost 10.7 million people, who pay tax in the United Kingdom, submitted their self-assessment tax return before the deadline passed, avoiding the late penalty fee of £100. Over 90% of British tax payers submitted their tax return using the online tax-filing service.
0.75 million people delayed submitting their tax return until the last day of the deadline. Out of those 0.75 million, more than 30 thousand people waited until the last minute and nearly a half of all tax-returners left it to the last month. During tax-return deadline day, HMRC received nearly a quarter of a million calls regarding self-assessment tax returns.
According to HMRC, there are still three quarters of a million people who have not filed their self-assessment taxes for the tax year 16/17.
Tax returns submitted after the deadline of the 31st January are automatically subject to a late filing penalty of £100, even if there is no tax owed. If submission is delayed any longer the tax payer will incur the following fines:
- After 3 months, additional daily penalties of £10 per day, up to a maximum of £900
- After 6 months, a further penalty of 5% of the tax due, or £300, whichever is greater
- After 12 months, another 5% or £300 charge, whichever is greater
- There are additional penalties for paying late of 5% of the tax unpaid at 30 days, 6 months and 12 months
Are you someone who has been struggling to organise their tax-related affairs and business? As a business you must submit a tax return to declare income and profits to HMRC and to declare any tax due. At The Financial Management Centre, we can help you complete your tax return, calculate your outstanding taxes quickly and efficiently.
We can help you ensure you never miss a deadline again! Use our contact form if you would like to speak with your local TFMC accountant or bookkeeper about the impending tax changes.