With the Self-Assessment Tax Return deadline just around the corner, the Burton Beavan team is here to remind you not to miss it!

What is a Self-Assessment Tax Return?

Each year, you need to fill out a Self-Assessment tax return (also known as a Personal Tax Return) as a declaration of personal earnings to HMRC. Earnings included in this tax return fall outside of the Pay As You Earn (PAYE) scheme.

When is my tax return due?

This year, the deadline falls on Wednesday 31^st January 2018.

What happens if I miss the deadline?

HMRC currently enforces a missed deadline penalty of £100 which is applied immediately. The penalty is automatic and non-negotiable, so don’t procrastinate filling in your tax return – there are only a few weeks left.

If you file later than three months post-deadline the penalty goes up. The amount is calculated on an individual basis, relating directly to your taxes and the time HMRC spend waiting for it. If, after 3 months you still haven’t filed your tax return, there’s a daily penalty of £10 for up to 90 days.

That’s a maximum penalty of £900 and it only increases as time goes on, as interest is charged on unpaid tax, as well as unpaid penalties.

How many people miss the deadline each year?

Last year, 840,000 people missed the tax return deadline, and between 2015-2017, HMRC cashed in on £283million from penalties.

The Autumn Budget 2017 revealed the potential introduction of a new points system; whereby those with genuine reasons for missing the deadline and those who are purposefully avoiding it are categorised and treated accordingly. A period of compliance from someone wishing to ‘wipe the slate clean’, as it were, would replace the excessive penalties incurred despite there being reasons for a late filing.

Are penalties ever issued mistakenly?

In certain cases, yes. These include:

• When someone registers for self-assessment in error, or unnecessarily,
• When there is a genuine reason for the late filing and,
• When someone has forgotten to inform HMRC of their return to the PAYE system.

What counts as a genuine excuse?

Unfortunately, a sorrowful “I forgot about it” isn’t going to cut it when it comes to HMRC. To rescind a penalty, you’ll have to appeal against it. Plus, you’ll only win that appeal if your excuse counts as ‘genuine’.

Here are some examples of genuine excuses:

• You had a serious health issue or illness at the time of the deadline
• A partner or close relative passed away, which prevented you from focusing on filing the return
• Your software failed during your preparation of the self-assessment
• The HMRC online servers were experiencing issues which made filing the return impossible
• A disastrous event such as a fire took place and prevented you from completing the self-assessment.

What can I do?

If you do anything on time this year – make sure your Self-Assessment Tax Return is submitted correctly and on time.

Please note that as of January 13^th, paying taxes using your personal credit card as a method was stopped. However, you can still pay using online or telephone banking, CHAPS, debit card, direct debit, or cheque.

Burton Beavan can help

If you’d like help with your tax return, please don’t hesitate to call us on 01606 333900, or email us on hello@burtonbeavan.co.uk