Guidance on Upcoming Tax Deadline

Published 29th Dec 2010 by Emma Sinfield

Chamber Patron, Wheawill & Sudworth Chartered Accountants, has put together some useful notes on filing your tax return before the January deadline.

Tax returns and payments for the year to 5 April 2010 need to be submitted by self-employed individuals, partnerships and trustees to H M Revenue & Customs (“HMRC”) by 31 January 2011 to avoid automatic interest and penalty charges.

At this late stage, the key points to note are:

• Returns have to be filed online either via the HMRC website or using professional software

• The automatic late filing penalty is £100; if the tax owing is less than £100, the penalty will reduce to the amount of the tax

• A late filed partnership return will attract a penalty of £100 per partner irrespective of the level of tax owing

• Interest on late paid tax is charged at 3%

• A further 5% is charged if the tax has still not been paid by 28 February 2011, with another 5% if the tax remains unpaid at 31 July 2011

• It is possible to agree a payment plan with HMRC in cases of particular cash flow difficulty; a taxpayer needs to ring the HMRC Business Payment Support Unit on 0845 302 1435 to discuss their circumstances

• If tax in excess of £1,000 is owed for tax year 2009/10, HMRC may request additional tax on account for 2010/11; it is possible to amend these estimated demands depending on likely income levels for 2010/11

If you need any assistance with your tax affairs, please contact Andrew Rainbow, Tax Manager with Wheawill & Sudworth Chartered Accountants, on:

P: 01484 423691

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