Ticking Clock of the Tax Dealine
94 days to go, not to Christmas but to 31 January 2023 tax deadline, at the time of writing.
Whereas in the past 2 years the tax return submission date has been extended due to covid, it is unlikely it will happen again. This is also the date that any outstanding tax must be paid – payment after this date incurs a penalty and interest.
What happens if my return is late?
An automatic £100 penalty for missing the 31 January deadline, but this rises the later the submission.
A £1,000 bill due on 31 January can quickly rise to £1,480 if the return is not submitted and the tax not paid until 1 June.
Your penalty for sending the return late £420
What you said your tax bill was £1,000
Interest added for paying your bill late £10.25
Penalty for paying your bill late £50
Estimate of the total you owe £1,480
How do I ensure my return is submitted on time?
1. Check if you need to do a return. If you haven’t in the past the things that may change this are any new sources of untaxed income/gains you may have received in the past year.
2. Gather together all the information you need.
3. Put suitable time aside to sit down and work through the form/s.
4. If your unsure of what you need to submit, concerned about your taxes you should consider instructing a professional tax advisor, their fee may well save you on the tax you end up paying.