The Self Assessment tax deadline is approaching! Don’t forget – you must send your online Self Assessment tax return by midnight on Friday 31 January 2014. If your online tax return is late, you will have to pay a penalty.
The only exception is if HM Revenue & Customs (HMRC) sent you a letter telling you to complete a tax return after 31 October 2013. In this case you’ll have three months from the date of the letter.
Using HMRC Online Service
You need to send your tax return online using the HMRC Self Assessment Online service.
New To Online Filing?
If you haven’t sent a Self Assessment tax return online before, you must sign up to use HMRC Online Services. For this you need your 10 digit Self Assessment reference number. It is also called your Unique Taxpayer Reference or UTR. It is on your paper tax returns or letters from HMRC telling you to complete a return. When you sign up, you’ll be given your online User ID on screen. Write this down as it won’t be sent by post.
You’ll need to sign up by 21 January 2014. HMRC will post an Activation Code to you before you start using the service. The Activation Code can take up to 7 days to arrive by post. When you get your activation code, go back to the HMRC site and log in. You will find instructions on how to activate the online service.
When you sign-up give HMRC your email address. Then, if you forget either your User ID or your password in future, you’ll be able to go online and get a new one sent to you.
Penalties If You Miss The Deadline
1 day late
The penalty is £100. This applies even if you have no tax to pay or have paid the tax you owe.
3 months late
£10 for each following day – up to a 90 day maximum of £900. This is as well as the fixed penalty above.
6 months late
£300 or 5% of the tax due, whichever is the higher. This is as well as the penalties above.
12 months late
£300 or 5% of the tax due, whichever is the higher. In the most serious cases you may be asked to pay up to 100% of the tax due instead. In some cases the penalties can be even higher than this (including the penalties above).
So don’t delay, get online and file your Self Assessment Tax Return before it’s too late!
By Claire Georghiades FCA, Co-Founder of Accounts Resource.
Accounts Resource is a pro-active accountancy practice based in South West London. Accounts Resource are specialists in providing Accounting and Tax solutions to small and startup businesses and won The Best New Startup Award at the Richmond Business Awards 2012 and Best Website at the Richmond Business Awards 2013.