Despite Mrs. Doyle's encouragement to, "Go on" and her
assurances that, "You will" submit your tax return to the
Inland Revenue by the 31 January deadline, the fact is that many of us
didn't, over one million of us in fact!
For many, this will lead to a penalty
of £100. However, even if you submit your tax return late, if the tax
you owe the Inland Revenue for last year is less than £100, the
penalty will be reduced to the amount of the tax due. If you do not
owe any tax the penalty will be reduced to nil.
If you do owe tax, the best thing to
do is to pay it as soon as possible. If you don't know how much it is,
anything is better than nothing. Interest will be charged at 6½% on
the difference between the amount that ought to have been paid on 31
January and the amount actually paid. So, any payment you can afford
to make will reduce the interest charge.
You will still have to submit your tax
return. The Inland Revenue will not forget about it and they are
unlikely to allow you to either. If you have not paid all the tax by
the end of February the Inland Revenue will add a 5% surcharge to your
bill, another incentive to do it now. If you do not submit your tax
return before 31 July you will be charged a further £100 penalty
(limited to the tax outstanding again.) If you have not paid all of
your tax by 1 August, a further 5% surcharge will be added. Just to
make matters worse, interest can be charged on the outstanding tax,
the surcharges and the penalties!
If Mrs Doyle didn't scare you enough,
perhaps the Inland Revenue will. So, if you didn't, you should!
How can you get help now, easily if
your affairs are fairly straightforward use our online
tax service it's FREE and will even do your calculation for
you. If you feel your needs may be more complex use our which
service is best for me to establish the correct level of
service or call us on 0800 9759010