penalty Archives

Tax “Payment Plans” are ENDING – Act NOW if you Owe Tax!

March 31, 2021/in 2019, 2020, 2021, Accountancy, Accountants, HMRC, Income tax, Late return, London, payment plans, penalties, penalty, Self-assessment, Tax advice, Tax bill, Tax return, Tax returns, Tulse Hill/by Mark

Are you late paying your tax? Do you owe unpaid tax for the last financial year, or earlier? Are you struggling to pay it?

Taxfile has recently been helping some of our customers with tax debts from 2019/20 and earlier. In particular, we’re helping them to arrange payment plans with HMRC as part of their ‘Time to Pay‘ scheme. This spreads the cost of those tax debts instead of paying them off in one go. This is really useful to those who are struggling financially following the pandemic. The new payment plans are only available until 1 April 2021, though, so really you should apply by 31 March 2021. Our advice is to act now if you are in a position to take advantage of the payment plans while they’re still — just about — available.

The benefits of arranging a tax payment plan now

Agreeing a payment plan with HMRC will help avoid the 5% late payment penalty that’s usually charged on outstanding tax not paid by the deadline. And, of course, spreading the cost helps those who might otherwise struggle to get together the full amount in one transaction. The HMRC interest rate seems relatively low too.

How Tax Payment Plans have gone so far

What we’ve found so far is that Read more

Late Filing Penalty Calendar

March 18, 2021/in 2021, Late return, penalties, penalty, Self-assessment, Self-employed, Sole traders/by Taxfile

If you needed to have submitted a self assessment tax return for 2019/20 but have not done so by 28/02/2021, you will now be receiving a letter from HMRC stating that you owe a £100 late filing penalty fee.

Please do not ignore this, as from 29th of May you will see an exponential growth in the penalty.

From 29th May you will receive a £10 per day fine for up to 3-months, meaning you can potentially get an additional £900 added to the initial £100 fine you have received.

On the 30th July you will then receive an additional £300, making the grand total for late filing £1,300 if not done by 30/07/2021.

If you have a tax return to file, please contact us on 020 8761 8000 so we can help you avoid any additional penalties you may incur.

5% Late Payment Penalty Relief Announced by HMRC

February 23, 2021/in 2020, 2021, Deadline, Filing deadlines, Income tax, Late return, payments on account, penalties, penalty, Self-assessment, Self-employed, Sole traders/by Taxfile

HM Revenue and Customs (HMRC) has announced that Self Assessment taxpayers will not be charged a 5% late payment penalty if they pay their tax or set up a payment plan by 1st April 2021.

Normally, a 5% late payment penalty is also charged on any unpaid tax that is still outstanding on 3rd March. But this year, because of the impact of the COVID-19 pandemic, HMRC is giving taxpayers more time to pay or to set up a payment plan.

Taxpayers have until 28th February 2021 to file any pending tax returns and prevent being charged a late filing penalty (of £100). They then have until 01/04/2021 to pay any outstanding tax or make an arrangement with HMRC for a payment plan before they receive a late payment penalty.

We encourage any of our clients that are struggling to meet their tax obligations to set up a payment plan to spread the cost into monthly instalments. More information can be found on the Government website HERE. You will be able to spread the cost of their self assessment tax bill through to January 2022.

If you have any questions, please do not hesitate to contact us on 020 8761 8000 or, if you still have a 2019/20 tax return to submit, then we can help you get this in on time to avoid the £100 late filing penalty. We will be open on Saturday the 27th & Sunday 28th February.

Taxfile’s Autumn Newsletter 2016

October 13, 2016/in 2014, 2015, 2016, Accountancy, Accountants, Accounts, Advice, Auto Enrolment, CIS, Construction Industry Scheme, Contractor, Filing deadlines, FreeAgent, HMRC, Late return, London, penalties, penalty, Refund, Save money, Self-assessment, South London, Subcontractor, Tax accountant, Tax accountants, Tax advice, Tax advisers, Tax agents, Tax refunds, Tax return, Tax returns, Taxfile, Tulse Hill/by Mark

Hot off the press is our brand new Autumn newsletter for 2016. If you haven’t yet seen it, take a look because it’s jam-packed full of useful information that’ll help you keep your tax affairs and accounts in order, save you money and keep you up to speed on tax matters. Here’s a quick flavour of what’s included (or click the thumbnail image to view or download the newsletter):

Act fast to save money on your 2015-16 tax return – see the newsletter’s first article.
Sub-contractors working in the construction industry are invited to claim their CIS tax refunds through Taxfile, so they have their refund in time for Christmas!
Help if you’re late with any previous years’ tax returns and tax payments — and how you already owe HMRC at least £1300 if you haven’t filed your 2014/15 tax return or paid tax for that year.
Try the UK’s Number 1 cloud-based accounts package FREE, for a month. No credit card required – cancel at any time – full details are included in the newsletter. [UPDATE: Please note that this offer has now expired].
Help if your tax affairs are in a mess — are you late filing returns or paying tax? Are you worried about HMRC penalties? Are you a foreign worker, working in the UK, and need to get your tax records up to date following the Brexit decision? We’re here to help!
Taxfile are Finalists in the ‘Independent Firm of the Year, Greater London’ category of the British Accountancy Awards 2016.
Free tax enquiry Fee Protection Insurance for Taxfile customers who file their tax returns by the statutory deadline through Taxfile.
How online banking may save you time and money.
Introduce a new client to Taxfile and save 10% on our fees!
Saturday opening at Taxfile (Tulse Hill office) throughout November and December.
Help with all your tax and accounting needs – check out our list of all the things we can help you with — now including auto enrolment!
And a ‘thank you’ to all Taxfile customers … Read more

Still Haven’t Filed Your Tax Return? Expect a Nasty Bill from HMRC!

April 22, 2015/in 2014, Accountancy, Accountants, Advice, HM Revenue and Customs, HMRC, Income tax, Key dates, Late return, London, Nil return, Online returns, penalties, penalty, Self-assessment, South London, Tax, Tax advice, Tax advisers, Tax affairs, Tax bill, Tax return, Tulse Hill/by Mark

If you still haven’t filed your tax return for the financial year up to 5 April 2014 you can expect the penalties from HMRC to begin racking up daily — and potentially very significantly — starting from Friday 1 May.

If you missed the 31 January Tax Return deadline …

If you missed the 31 January 2015 deadline for tax returns, you already owe HMRC £100 in fines on top of any tax you owe. If you don’t owe any tax whatsoever, HMRC still require a tax return from you, plus that £100 in penalties.

If you still haven’t filed your return by 1 May …

From 1 May 2015 you can also expect a £10 daily penalty to kick in, on top of the £100 fine above, up to a maximum addition for the period of £900 (90 days) extra. But it gets even worse…

If you STILL haven’t filed your return by 30 July …

After the 90 day period beginning on May 1st, if you STILL haven’t filed your tax return you’ll receive a further £300 penalty (or 5% of the tax due; whichever is highest) plus a possible additional fine equivalent to 100% (or more) of the tax due, depending on how serious the case is.

Each of these individual penalties is in addition to the preceding ones.

So, to conclude, if by 30 July 2015 you STILL haven’t filed your latest tax return you will be in for a minimum penalty of an incredible £1300.00 and that’s in addition to the tax you owe. Also, Read more

Tax return help & accounting advice for taxi drivers, cabbies, cab firms, couriers, limos and private hire firms. We're accountants in Tulse Hill, South London, SE21.

Missed the Tax Return Deadline?

February 3, 2015/in 2016, 2017, 2018, 2019, 2020, Accountancy, Accountants, Deadline, Dulwich, Filing deadlines, HMRC, Income tax, Key dates, Late return, London, Nil return, penalties, penalty, Self-assessment, South London, Tax, Tax accountant, Tax accountants, Tax advice, Tax advisers, Tax return, tax return amendment, Tax returns, Tulse Hill/by Mark

[Updated 3 February 2020]: If you missed the deadline for submission of your tax return to HMRC (that was 12 midnight on Saturday 31 January) here’s what you can expect in terms of a fine:

In case you didn’t realise, you still had to submit a tax return even if you did not owe any tax and the longer you leave it, the more it will cost you — as you can see in the table above. Alternatively, use this excellent estimation tool to work out your exact penalty at any given point in time. Not sure if you even need to submit a Self Assessment tax return? No problem; there’s a tool for that too (here).

Statistically speaking, women seem to send in their returns on time more often than men; 18 to 20 year olds of either sex are the very worst with around 11% of them sending in their returns late in recent years, while those over 65 seem to be statistically the most reliable of all, with only around 1½% of them having filed tax returns late. We’ll have to wait and see how it panned out this year when the figures are in.

Taxfile are here for you if you need to get your tax return sorted out whether you’re on time or not – but the earlier the better if you’re to minimise any penalty from HMRC. We are professional accountants and tax advisors, are based in South London, and will help to get your tax affairs in order with minimal fuss. We will ensure that all your figures are correct so that you pay only the right amount of tax – no more, and no less. For professional tax help contact us or book an appointment on-line.

You have only HOURS left to submit your Tax Return!

January 30, 2015/in 2014, Accountancy, Accountants, Advice, Deadline, Dulwich, Filing deadlines, HM Revenue and Customs, HMRC, Income tax, Key dates, Late return, London, penalties, penalty, Self-assessment, South London, Tax, Tax accountant, Tax accountants, Tax advice, Tax advisers, Tax agents, tax experts, Tax return, tax return amendment, Tax returns, Tulse Hill/by Mark

You’re running out of time to submit your tax return and have just HOURS left! We are here to help you fill in and submit your self assessment tax returns to HMRC on Saturday 31st (by appointment only, 9-1pm) so come and see us quickly or you may miss the HMRC deadline. If you do miss it, you’ll get an automatic fine of £100 minimum – and it could get significantly worse (up to £1,600) if you continue to delay.

It doesn’t matter if you have zero tax to pay – you still need to submit your tax return on time. You also need to have paid HMRC any tax due for the 2013-14 financial year. So don’t miss your last chance to get our professional help with filing of your tax return!

ACT NOW and contact us on 020 8761 8000 or book an appointment online.

Avoid Significant HMRC Penalties – file your tax return on time!

October 20, 2014/in 2018, 2019, 2020, Accountancy, Accountants, Filing deadlines, HM Revenue and Customs, HMRC, Income tax, Late return, London, Nil return, penalties, penalty, Self-assessment, South London, Tax, Tax accountants, Tax advice, Tax returns, Taxfile, Tulse Hill/by Mark

[UPDATED AUGUST 2020] Did you know that you get an automatic £100 minimum penalty if you file your Self Assessment tax return (or pay any tax owed) even one day late? After 3 months you can add £10 per day extra to that fine (up to 90 days/£900 max) and after 6 months it gets significantly worse. And remember that you need to file your return on time even if you don’t owe any tax, or if you have already paid it! Latest indications are that there are also no warnings given by HMRC. See the table below for the detail.

So our message is simple: don’t file late, and don’t pay late! Taxfile are here to help you, of course. We know Self Assessment Tax Returns back to front and we can help you file accurately, and on time. If you’re late, we can help to sort things out quickly and so keep any HMRC penalties to a minimum.

It’s official: thousands are on the wrong tax code!

January 30, 2014/in Advice, Deadline, Employee, Filing deadlines, HM Revenue and Customs, HMRC, Income tax, Inland Revenue, Inspector of taxes, Key dates, Late return, London, Pay-as-you-earn, PAYE, penalties, penalty, Rebate, Self-assessment, South London, Tax, Tax accountant, Tax accountants, Tax advice, Tax advisers, Tax affairs, Tax agents, Tax bill, Tax code, Tax determination, tax experts, tax inspector, Tax liability, tax office, Tax return, Tax returns, Taxes, Taxfile, Taxman, taxpayer, Taxpayers, Tulse Hill/by Mark

With the tax return deadline being only hours away (midnight 31 January 2014) there is still time to get professional help if you need it – particularly because HMRC often get it wrong according to new research by UHY Hacker Young.

In just one example, HMRC sent a tax bill to a pensioner which demanded over £576k in tax! With an income of only £11k per annum this was clearly incorrect but what if it had been only hundreds of pounds wrong – would the pensioner have noticed and, if so, would he have been confident enough to question it with the might of HMRC?

According to the research, HMRC employees have been making ‘basic’ errors which have led to problems such as people being on the wrong tax code and consequently underpaying or overpaying tax. While underpaying it may sound attractive on the face of it, chances are the system will catch up and then a correction will need to be made later on, leaving the taxpayer with an unforeseen bill to pay – a real blow for cashflow.

While the UHY Hacker Young research cites an error rate in 2013 of 37% in the sample tested, HMRC are arguing that the research is wrong and that their PAYE coding notices are 99% accurate. Either way, when you consider that Read more

HMRC now has landlords in their sights

October 23, 2013/in Accountancy, Advice, Buy to let, Capital gains tax, CGT, Disclosure, HM Revenue and Customs, HMRC, Income tax, Inland Revenue, Land and property, Landlords, Lettings, Lettings income, penalties, penalty, Principal Private Residence, property investor, South London, Tax, Tax advice, Tax advisers, Taxes, Taxman, Undeclared income, Value Added Tax, VAT/by Mark

HMRC (Her Majesty’s Revenue & Customs) has announced some new initiatives over the course of the last month and one of these is The Let Property campaign which is a campaign designed to recover undeclared tax from those receiving income from residential property lets. The idea is to encourage those landlords with under-declared income or gains (potentially including income tax, Capital Gains Tax and VAT) to contact them in order to make a full disclosure. By doing so they may well avoid the higher penalties which may be applied to them should HMRC discover the undeclared income/gains via other means. Don’t forget that they now have access to information shared across systems, including in relation to properties both at home and abroad, as well as being gained through their digital intelligence system ‘Connect’ which identifies links between individuals, entities and properties. So the message to landlords is loud and clear!

The campaign applies to landlords whether they have just a single property or a large portfolio of properties and encompasses lets to students, business workforces and the holiday market. Read more

Tax “Payment Plans” are ENDING – Act NOW if you Owe Tax!

The benefits of arranging a tax payment plan now

How Tax Payment Plans have gone so far

Late Filing Penalty Calendar

5% Late Payment Penalty Relief Announced by HMRC

Still Haven’t Filed Your Tax Return? Expect a Nasty Bill from HMRC!

If you missed the 31 January Tax Return deadline …

If you still haven’t filed your return by 1 May …

If you STILL haven’t filed your return by 30 July …

Missed the Tax Return Deadline?

You have only HOURS left to submit your Tax Return!

Avoid Significant HMRC Penalties – file your tax return on time!

It’s official: thousands are on the wrong tax code!

HMRC now has landlords in their sights

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