Last month on Christmas Day, according to HM Revenue & Customs (HMRC) around 850 people filed their online tax return despite the deadline for submission not being until 31 January 2011.
Super organised or sad? You decide. Either way the 31 January deadline still looms and is now only a matter of days away. Miss it and you face an automatic £100 fine.
Most small business owners who are self-employed will have to complete an online self-assessment tax form. It may be time consuming and painful but it is also mandatory, so the best option is to bite the bullet and crack on.
Francesca Lagerberg, head of tax at business and financial advisers Grant Thornton, says: “Those who plan to file online should ensure they have prepared the relevant documentation and have not left it too late to avoid being caught up in the last minute rush. Last year an estimated one million people had to pay the taxman £100 for a late submission. In the current economic climate it would be a shame to incur an easily avoidable £100 penalty.”
Grant Thornton also adds that while £100 is the maximum penalty payable for late submission this is capped at the amount of tax outstanding as at 31 January. Therefore, if any outstanding tax liability is fully paid by this date the penalty is reduced to nil, although the penalty may be issued automatically and an appeal will need to be lodged with HMRC. If a business partnership tax return is filed late then there is a penalty of £100 for each partner in the partnership and this applies even if all of the partners pay their taxes by 31 January 2011.
Still confused? Call the HMRC helpline on 0845 900 0444 or visit http://www.hmrc.gov.uk/sa/
For information on how DHL Servicepoint can help small businesses visit: www.dhlservicepoint.co.uk