With the deadline looming for your 2022 return, John Hunter from Gillespie Inverarity & Co. gives us the lowdown on self assessment tax returns.
-
Some Courier online content is funded by outside parties. The revenue from this helps to sustain our independent news gathering. You will always know if you are reading paid-for material as it will be clearly labelled as “Partnership” on the site and on social media channels,
This can take two different forms.
“Presented by”
This means the content has been paid for and produced by the named advertiser.
“In partnership with”
This means the content has been paid for and approved by the named advertiser but written and edited by our own commercial content team.
Self assessment tax returns deadline approaching
Under the self assessment tax rules, HMRC makes individuals responsible for ensuring their tax liability is calculated, and that any tax they owe is paid on time. Now is the dreaded time of year for sole traders, business partners and all others who have been issued a tax return to complete. The deadline for filing an online self assessment tax return covering the trading period 6th April 2021-5th April 2022 is 31st January 2023.
“Although this cycle is repeated annually, it seems to be a shock for some people who panic that they aren’t going to be able to complete the forms in time,” said John.
Late filing penalties
The late filing penalties apply immediately after the self-employed self assessment deadline of 31st January:
£100 late filing penalty applies after midnight on 31st January, whether there is tax to pay or not, and even if the tax has already been paid.
“People don’t understand the importance of filing on time or realise that they risk penalties for not doing so,” said John. “The deadlines are inflexible and relate to the filing of self assessment returns, irrespective of whether tax is due,” he went on to say.
- Filing more than three months late = daily penalty of £10 to a maximum of £900
- Filing more than six months late = and additional £300 fine or 5% of the tax due, if this amount is higher
- Filing more than 12 months late = another £300 fine or an additional 5% of the tax due, if this amount is higher
- In serious cases, people have faced penalties of up to double the amount of tax due.
Do you want to avoid the stress of the looming deadline? If you live in the Fife or Perthshire area and need to complete a self assessment tax return contact Gillespie’s on 01333 421166. Gillespie’s will take the weight off your shoulders. What’s more, their Tax Team can help you with your tax planning to make sure your tax position is optimised and that you comply with your HMRC obligations .
Learn more about self-assessment tax returns and more on Gillespie’s website.
