Week 6

• Deadlines for tax return​

  • 31 January (online) following the end of tax year​

  For 2023-234 it will be 31 January 2025​

  ​

  You have almost 10 months to complete tax return​​
• penalties for late submission of tax return​

  • 0-3 months late = £100 penalty ​
• penalties for late submission of tax return​​

  • 3 months  - up = previous penalty plus £10 per day up to £900
• penalties for late submission of tax return​

  • 6 months – up = previous penalties plus greater of £300 and 5% tax due ​
• penalties for late submission of tax return​​

  • 12 months  - up = previous penalties plus further £300 or 5% tax due​
• penalties for late submission of tax return​​

  • deliberately withheld information from HMRC then the 5% becomes 70%​
• penalties for late submission of tax return​

  • deliberately and concealed withheld information from HMRC then the 5% becomes 100%​
• Self Assessment Tax Returns: requirement to notify chargeability​ Taxpayers who do not receive a tax return are required to notify chargeability to income tax or capital gains tax.​

  The time limit for notifying chargeability is six months from the end of the tax year in which the tax liability arises. Notification must be received on or before 5 October.​
• Self Assessment Tax Returns: requirement to notify chargeability

  ​The taxpayer is liable to a financial penalty if notification is not made within the six-month time limit. The maximum penalty is the net amount of tax due, but unpaid, at 31 January following the tax year in which the liability arises.​
• balancing payments penalties​

  Your bill includes the tax you owe for the last tax year. This is called a 'balancing payment' on your bill. If this is more than £1,000, your bill will usually include an additional payment towards next year's bill (known as a 'payment on account’).​
• balancing payments penalties​​

  • 30 days late        - 5% of tax due​
  • 6 months late   - Further 5% of tax due​
  • 12 months late - Further 5% of tax due​
  • Plus interest  on any late payment of any balance​
• ‘Payments on account’ are advance payments towards your tax bill (including Class 4 National Insurance if you’re self-employed).​
• Payments on Account

  • You have to make 2 payments on account every year unless:​
  • your last Self Assessment tax bill was less than £1,000​
  • you’ve already paid more than 80% of all the tax you owe, for example through your tax code or because your bank has already deducted interest on your savings​
  • Each payment is half your previous year’s tax bill. Payments are usually due by midnight on 31 January and 31 July.​
• Interest on overdue POA’s, balancing payments and penalties is calculated as follows:​

  ​

  1. POA’s and balancing payments, interest run from due date to the date when is paid.​
  2. Interest on a penalty runs from the due date of payment for that penalty (generally 30 days from its imposition).​
  3. Interest is calculated on a daily basis at the official Bank of England rate plus 2.5%​
• Payments on account​

  • Jan 31 in the tax year                                          1st P O A​
  • July 31 following the end  of tax year                 2nd  P O A​

  Each of the above equals 50% of previous year’s tax liability​

  Any balance is  paid(refunded) on the   Jan 31  after the tax year end          ​
• Payments on account​For 2022/23 what will the dates be:​

  • 31 January 2024 – Balancing payment (tax 2020/21)​
  • 31 January 2024 - 1st P O A (50% of tax paid for 2020/21)​
  • 31 July 2024 - 2nd  P O A (50% of tax paid for 2020/21)​