It is not easy to run a business. There is so much that one has to do to generate revenue and earn profit. Sometimes, it gets so demanding that there aren’t enough hours to get everything done. The possibility of missing deadlines and forget important tasks is high on such days. Missing the self-assessment tax return is one such forgotten task on a super-busy day.
When you forget and miss the deadline of submitting a self-assessment tax return, you become liable to pay some penalty. It doesn’t matter if you are late by a second, minute or a day. Late is late in case of filling self-assessment tax return. The body that keeps the tab on such activities is HMRC. It checks if you have exceeded or not exceeded the deadline and in the former case holds you accountable for penalties
Here are some penalties that a person becomes liable to pay when he misses self-assessment deadlines:
- The fixed self-assessment late filing penalty is 100 pounds that are payable to HMRC as soon as you miss the deadline.
- If it has been three months and you have not filed your self-assessment tax return, get ready to pay an insanely heavy amount. You will be charged to pay additional 10 pounds every single day. It can go up to 900 pounds maximum.
- 6 months after the deadline has been crossed, you can conveniently expect the further penalty of 300 pounds or 5% of the tax, whichever is greater.
- For those who are late by a year for tax filing, you will liable to another 300 pounds or 5% of the tax amount, whichever is greater.
The formula is pretty simple. The more is the amount of tax, the higher will be the amount of penalty. The only thing that happens after you forgot the self-assessment tax return is the penalty.
Reasons for Penalty
The government has given the option for appealing a late filing penalty as well. Herein you can put forward a valid reason as to why you missed the date of filing the tax. Some of the legit reasons are:
- The sudden demise of a partner or any close friend or relative a few days before the deadline.
- Caught some serious, life-threatening illnesses and were in the hospital for long
- Serious computer or technological malfunction shortly before or while preparing your return online.
- Faced some issues on HMRC official website.
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How can you prevent the problem?
One option is that you can write it in your annual diary and set an automatic reminder. Set the reminder at least a week before the final deadline. Give yourself some time. Do not fret at the last moment. Another option is that you can hire a professional account that can handle all your tax businesses. This is the most simple option to go with. It gives you the freedom to function stress-free and flexibly.