If you are contractor, freelancer and small business owner in the UK, it's staggeringly vital to monitor your filing and payment due dates, as well as changing tax rates and thresholds.
HMRC has two categories of penalties for Self Assessment .
1:- Late filing of annual tax Returns
2:- For late payment of the Income Tax and NI Contributions reported on the tax return.
Penalties for late Self Assessment tax return
1:- Missed Due Date – £100 fine
2:- 3 months late – £10 day by day penalty for up to 90 days
3:- 6 months late – 5% of due tax amount
4:- 12 months late – 5% of due tax amount
Penalties for late payment of Self Assessment tax bill
1:- 30 days late – 5% of assessment due
2:- 6 months late – 5% of assessment due at that date
3:- 12 months – 5% of tax assessment due at that date
The penalty is multiplied if your records are late two years in succession. You can be fined and your organization struck off the register in the event that you don't send Companies House your accounts or yearly return.
Appeal against a late filing penalty
You should give a reason why you couldn't document your accounts on time.
1:- Company is Dormant
2:- Can’t bear to Pay
3:- It was accountant’s fault
4:- Didn’t know when or how to file your accounts
5:- Accounts were delayed or lost in the post
6:- The directors live or were travelling overseas
You can send a letter to the address on the front page of the penalty receipt that Companies House send you, or send an email including the penalty reference to firstname.lastname@example.org .
DNS Accountants is a leading firm of accountants, tax specialists & auditors is specializes in the tax advice and return preparation for UK clients. DNS Accountants help individuals save time and money with self assessment services.
Get a free consultation today call: 02071480205.
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