Kirkpatrick & Hopes - Succession Planning Accountants

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Last call – Tax returns and reminder about tax payment on 31 January 2013

If  you have still to file your tax return, then please read on. You need to act quickly to avoid having to pay the following penalties.

The filing date for the 2012 tax return is 31 January 2013. If the return is late, these penalties will apply:

• An initial £100 fixed penalty – even if no tax is due or all the tax is paid on time

• After 3 months, 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. In serious cases, the penalty after 12 months can be up to 100% of the tax due.

This means that if you do not send in your 2012 tax return until 30 September 2013, you will have penalties to pay of £1,300 even if no tax is payable.

In addition there will be late payment surcharges and interest charges as outlined below.

Do not forget to pay your tax bill on 31 January 2013.

Please make sure you make your tax payment by 31 January. Late paid tax will be subject to an interest charge of 3%.

For example, if you pay a tax bill of £2,000 10 days late, you will owe interest of £2,000 x 3% x10/365 = £1.64.

Beware of late payment surcharges.

If you pay your tax late, the surcharges are 5% of the tax unpaid at:

• 28 February 2013
• 31 July 2013
• 31 January 2014

Interest is charged in addition to these penalties.

For example, if you owe tax of £10,000 from 2011/12 due on 31 January 2013 which is not paid until 1 August 2013, you will owe

Tax: £10,000

Initial surcharge: £10,000 x 5% = £500

Second surcharge: £10,000 x 5% = £500

Late payment interest: £10,000 x 3% = £300 x 182/365 = £149.58

Total owing: £11,149.58

Details on how to pay tax can be found by clicking on the link below

http://www.hmrc.gov.uk/payinghmrc/selfassessment.htm

Tax can also be paid over the phone using your debit card by calling 0845 305 1000 and giving details of your card number, tax reference and the amount you wish to pay.

 

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