The 31st January 2020 deadline has been and gone and you have not yet filed your tax return. Time got away from you or maybe you did not realise that you needed to complete one until now? Whatever the reason you need to be aware of the following;
Penalties are highly likely at this stage and it is recommended you file your return as soon as you can.
You will receive a penalty of £100 if your tax return is up to 3 months late. You will have to pay more if it is later, or if you pay your tax bill late! You'll be charged interest on late payments.
If you are completing a partnership tax return and this is late all partners can be charged a penalty.
I think I have a genuine reason for filing late?
There may a very good reason that you have not yet filed your return, unfortunately HMRC will not accept an excuse such as 'my dog ate it' which happens to be one of the top excuses they have received over the years
They will however, accept reasons such as; you may have had an unexpected stay in hospital or you had a serious or life-threatening illness. HMRC have compiled a list of reasonable excuses and you should notify them as soon as you can. It would be worth having proof to hand when contacting them and to also demonstrate to them that you are doing all you can to now file your return.
I have filed, but I cannot pay
Ok, so now you filed your return you will be left with a bill to pay which also should have been paid by 31st January. Should you not be able to meet the payment for your tax bill contact HMRC at your earliest opportunity.
It may be that you can schedule a payment plan to pay in instalments.
Think ahead for Making Tax Digital
With MTD over the horizon begin converting to a software such as GoSimpleTax and utilising their income tax calculator and submission tool for your business will help you file on time next year. Giving you full visibility of your tax liability in real time whilst giving and reviewing your pension contributions and investment opportunities. (And remember we have our own guidance on MTD - view it here landlordmtd.com
This article is another 'advertorial' from GoSimple Tax - About GoSimpleTax
GoSimpleTax supports the self-employed and sole traders all over the UK to file accurate Self Assessment tax returns. You'll be able to do so quickly as well – their software automatically calculates income, expenditure and tax owed in real time, and from a variety of devices.
Written & oral information and advice from the Portsmouth & District Private Landlord's Association is given in good faith, but no responsibility whatsoever is accepted by the Association or it's officers for the accuracy of it's information & advice nor shall the Association be held responsible for the consequences of reliance upon such information.