The tax-return date is just around the corner. It’s never a bad idea to get everything sorted before the tax filing process starts off. You don’t want to end up with all that mess before you reach the deadline. Avoid fuss by submitting all your tax returns on time.
What happens if your tax returns get late? Most of the people come at the eleventh hour and miss deadlines. This adds in a whole additional day. As a result, people get slapped with fines and penalties by HMRC.
Have your own deadline
There’s no complex formula regarding late fines and penalties. HMRC would straightaway charge £100 if you somehow miss the deadline. You have to submit your tax return by 31 October 2020 for paper forms, and midnight on 31 January 2021 for online returns.
In order to catch the deadlines, it’s always a good idea to have your own deadlines. You don’t have to wait for the official closing date.
What is Corona Tax Relief?
Corona tax relief is like any other relief given by the Government to support people during the tough time ahead. Let’s go through each one of the extended deadlines:
Self-Assessment payments date
If you haven’t submitted the personal tax assessment yet, know that the date has now been extended. The second self-assessment payment for the year 2019/20 has been extended to 31st January 2021.
Tax Digital VAT due date
This is the requirement by the HMRC that you have to fulfil. You have to digitally link software in the Making Tax Digital VAT return and its date has now extended to 1st April 2021.
VAT payment deadline extended
VAT payments that were due between 20th March and 30th June 2020 will now be collected until 31st March 2021.
What Penalties Are Due If You Miss Out On the Deadline
You are probably wondering about the consequences of late submission. If you missout on the deadline post the Corona extension, know that there will be fines at your end. Here are the possible scenarios:
- If you are 1 day late, you will be charged £100 after the deadline.
- If you are up to 3 months late, you’ll have to pay another £100.
- If the tax gets 3 months delayed, you’ll have to pay around 10% of the unpaid tax bill.
- Know that if you’re late 3 times in a row, the £100 penalties increase to £500.
What happens if you’re 6 months late
If your tax returns get late more than 6 months late, know that HMRC will send out a letting to help you understand what amount you’re willing to pay. Pay the corporation tax return and file your tax returns accordingly. HMRC calculates the interest and penalties you need to pay.
What is Special Tax Relief?
Special tax relief is the only resort to turn to if you’ve missed out on too many deadlines. Special relief grants are hard to get until you provide HMRC with some evidence or a good reason. If you think you can get the tax relief you should go to the cheap accountants in London who will sort it out for you.
What will happen if you don’t send your tax return
If your tax returns get late? You must file it back. Sometimes you don’t owe any tax. Even in those cases, you have sent it back. Or you can choose to ask HMRC to withdraw the return.
In any case, if you fail to send the return back, you will be charged in the form of penalties and bills. Those bills are called determination. In the world of tax, determination is a bad signal. If you get it then expect a legal notice from HMRC because HMRC will get it one way or another from you. In this case, they will turn to the courts or to the banks for bankruptcy. To evade any such situation you have to send the tax return.
It is best if you can get a professional hand and involve it in the process. Our accountants in London can ease the whole process for you, where you don’t have to worry about anything. We will make sure that your process is streamlined in all stages. Timelines and penalties can be avoided easily with some proper management.