There are just 10 days left to send your 2014-15 tax return to HM Revenue and Customs (HMRC) and avoid a £100 late-filing penalty.
If you still have to submit a return, you need to do it online and pay what you owe by midnight on Saturday 31 January.
If you haven’t sent a tax return online before, you’ll need to sign up for HMRC’s online service by Monday 21 January. This is because it can take up to seven working days to complete the process, as an Activation Code has to be posted to you. People who’ve filed online before, but have lost their password or user ID and need a replacement, should also contact HMRC by this date.
Self Assessment-only customers (those who are self-employed, with no other source of income, no employees and who are not registered for VAT), can now opt to receive instant email alerts and electronic messages from HMRC, rather than paper communications. To sign up for paperless Self Assessment, log onto your Self Assessment online account and follow the prompts. In future, this service will be extended to other Self Assessment online customers.
The penalties for late tax returns are:
• an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time;
• after 3 months, additional daily penalties of £10 per day, up to a maximum of £900;
• after 6 months, a further penalty of 5 per cent of the tax due or £300, whichever is greater; and
• after 12 months, another 5 per cent or £300 charge, whichever is greater.
There are also additional penalties for paying late of 5 per cent of the tax unpaid at 30 days, 6 months and 12 months.
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