Whatever type of business you have, be it a sole trader, partnership, limited company, LLP or landlord a tax return must be completed to declare your income to HMRC and to let them know how much tax is due.
Unfortunately, not submitting your tax return on time can result in considerable penalties and interest being accrued by HMRC. Therefore, it’s so important to put arrangements in place early on to ensure everything is completed on time. Another huge benefit to being organised with your tax affairs is that you will know how much tax is due in advance with a good amount of time to pay your balance to HMRC.
In most cases it will take you a lot longer to complete your own tax return than it would for an advisor. This time could be better spent running your business!
If we prepare your annual accounts then we would normally prepare your tax return at the same time at no extra cost to you.
The tax year runs from 6th April one year to 5th April the next and this is the period covered on your tax return. All returns filed online are due by 31st January following the end of the tax year (or 3 months after the return was issued if later). So, the tax return covering the period 6th April 2017 to 5th April 2018 is due together with any payment by 31st January 2019.
Late returns will incur automatic penalties depending on how late the return is:
1 day late £100 penalty even if there is no tax to pay
3 months late £10 for each following day – up to a 90 day maximum of £900. This is in addition to the fixed penalty above
6 months late £300 or 5% of the tax due, whichever is the higher. This is in addition to the penalties above
12 months £300 or 5% of the tax due, whichever is the higher. In serious cases you may be asked to pay up to 100% of the tax due instead. This is in addition to the penalties above.
Peace of Mind
When dealing with your tax return, we will provide you with full details of your tax liability or tax refund together with the due dates of any payments of tax required. We will also advise you of payments on account and whether any election to reduce your payments on account should be submitted.