Self-assessment deadline 31st January 2014 and penalties

- Wednesday, January 08, 2014

Self-assessment deadline 31st January 2014 and penaltiesThe self-assessment deadline for the last tax year is nearly here! After all the festivities it is probably the last thing you want to be thinking about. But if you have not done your 2012/13 self-assessment tax return do make sure that you do it before the 31st January 2014 as HMRC fines are now quite potent and they apply instantly.

Make sure you file in good time

I have had people come to me asking for help who have clocked up £900 in fines very quickly without even knowing it.

HMRC penalise you straight away if your self-assessment is late with a £100 fine. Then it is £10 per day for the next 90 days and followed by an extra £300 minimum if 6 months late and another £300 minimum if 12 months late.

So don't bury your head in the sand and take action if you need to.

If you want any advice or help with your self-assessment do contact me and I will gladly help.

For a basic self-assessment we charge £144 (including VAT) so that is cheaper than being 5 days late with your self-assessment as the HMRC penalty would be £150.

Example of late Penalty

Mr Big's tax return is due on 31 January 2014 but HMRC doesn't receive it until 20 August 2014. It is over 6 months late so he will have to pay at least £1,300!

  • £100 fixed penalty
  • £900 penalty - this is 10 per day from 1 May to 29 July, when the maximum 90 day penalty is reached.
  • £300 or 5% of the tax due - whichever is the higher

If you think that there is a reasonable excuse for sending a tax return in late you can appeal against it but HMRC accepts very few excuses.