So we’re now in 2016, Christmas is over and the New Year has just begun… Unfortunately that means the clock really is ticking for you to get your tax return submitted.
Nearly four million of the 10.2 million people in Britain required to fill in tax returns have not yet sent them in. Failure to complete your 2014/15 tax return in time for the deadline of 31 January 2016 will result in some pretty hefty fines. Since the deadline for submitting a paper tax return was 31 October 2015, the only remaining option is to submit your return online.
The penalties:
- If you miss the deadline of 31 January you will automatically be fined £100.
- If your return is 3 months late, you will be fined £10 a day for 90 days, this can result in a maximum penalty of £900.
- If 6 months late, a further penalty of five percent of the tax due or £300, if greater.
- And finally if 12 months late, a further penalty of five percent of the tax due or £300, if greater.
But don’t worry! There’s no need to panic just yet, there’s still time. To ensure you meet the deadline, we’d like to offer you our top three pieces of advice.
- Firstly, get your papers in order. We understand this is a chore, but unfortunately it is a necessity. Listed below are what you’ll need to have to hand (if applicable):
- A P60 form from your employer showing your income and the tax paid on it.
- A P45 if you have left a job within a tax year
- a P11D or P9D detailing benefits and expenses
You will also need to provide details on any other kind of income you may have, this can include things such as interest on you bank/building society accounts, dividends and investments
- Secondly, if you value your sanity then we recommend you don’t call HMRC. The Public Accounts Committee conducted research that revealed that only 50% of calls made in the first half of 2015 were actually answered by HMRC. If you were lucky enough to have your call answered, you would have a 1 in 3 chance of not having to wait over 5 minutes to speak with someone.
- Our last piece of advice is to get an online account with HMRC. Since by now you would have missed the deadline for paper returns – you will need a HMRC website login (if you don’t have one already). Please note than when you sign up for an account you will have to wait 7 days to receive an activation code in the post. You cannot submit your tax return without it.
Remember, we’re here to help; if you need help submitting your return, then you’re certainly in the right place. Contact us for a quote today!
