insideKENT Magazine Issue 80 - November 2018 | Page 203
BUSINESS
THE ONLINE
DEADLINE
IS LOOMING
BY RICK SCHOFIELD, TAX PARTNER AT WILKINS KENNEDY ASHFORD
THE DEADLINE TO SUBMIT YOUR TAX RETURN BY PAPER HAS
ALREADY PASSED. YOU STILL HAVE TIME TO FILE YOUR RETURN ONLINE,
BUT THE DEADLINE OF 31 JANUARY IS COMING UP FAST. HERE’S A
ROUGH GUIDE TO SELF-ASSESSMENT, WHO SHOULD FILE A RETURN
AND WHAT HAPPENS IF YOU MISS THE DEADLINE.
WHO NEEDS ONE
If you are self-employed then you will need
to file a tax return. Even if your self-
employment is not a full-time occupation, for
example, if you run a part-time business or
get income from a property portfolio, you will
still need to be prepared. HMRC will contact
you if you are required to fill in a tax return,
but you can also check out your status online
here: hmrc.gov.uk/sa/need-tax-return.htm
NO INCOME? NO ESCAPE!
Even if you don’t owe any tax, or you didn’t
do any trade, you will still need to submit a
return. The clue is in the title – tax is collected
on a self-assessment basis so you cannot rely
on HMRC to ask for a tax return. You can
check whether you need to file a tax return at
www.gov.uk/self-assessment-tax-
returns/who-must-send-a-tax-return. Even
if you don’t owe any tax you can’t escape a
fine if you miss the deadline, you will be hit
with £100 penalty, with additional penalties
the longer you leave it. Ignorance is no excuse!
NO EXCUSES
HMRC has published some of the greatest
tales ever told as to why people have not
submitted their tax returns on time. Whilst
cruising around in a yacht or your goldfish
dying may seem like plausible excuses, they
are not in the eyes of HMRC. Unless there has
been any technological issues on HMRC’s
side, for example if their site is down, or you
have been subjected to floods and your records
have been destroyed, then you will need to
face up to the fact that there is little excuse for
not filing your return on time.
WHAT HAPPENS IF YOU MISS THE DEADLINE?
You will face an instant fine of £100. You will
then have three months from 31 January to
complete your tax return before your £100
fine will increase – but that doesn’t mean you
can delay it! If it is still outstanding after 3
months there is a further fine of £300 plus,
you will be charged a daily penalty of £10 per
day up to the maximum amount of £900. If
you miss the deadline by six months there
will be a further penalty of £300 or 5% of the
tax owing if this is greater.
You’ll incur interest on the amount you owe
as well, but if you are a multiple offender then
you risk making yourself vulnerable to an
inspection from HMRC. If you’ve failed to keep
sufficient records to produce an accurate tax
return, and HMRC does come knocking, you
could face a further fine of up to £3,000.
across all sectors to file their tax returns. We
can also help you to uncover any hidden
opportunities for tax relief, pension
contributions or Gift Aid payments. For
example, did you know that subscriptions to
professional bodies are tax deductible? Have
you looked at any business mileage that has
not been recompensed by the company?
These are all things that we can do to help
you. Contact us at our offices in Ashford,
Canterbury, Maidstone, Orpington and
Sandwich to see how we can help.
Local offices:
Ashford: 01233 629 255 / Canterbury: 01227 454 861
Maidstone: 01622 690 666 / Orpington: 01689 827 505
Sandwich: 01304 249 997
TIPS FOR GETTING IT IN ON TIME
Aim to file your return at your earliest
opportunity, before Christmas and other
holidays get in the way. Planning ahead is the
best and only way to avoid penalties, so don’t
put it off! Have your UTR code ready and your
National Insurance number to hand.
Don’t forget your accountants as they will be
the lifeline you need when it comes to
submitting your return – paper or online. Here
at Wilkins Kennedy, we work with the owners
of hundreds of businesses of all sizes from
[email protected]
www.wilkinskennedy.com
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