As many of our clients are no doubt aware, your 2008 Self Assessment Tax Return has to be lodged with HM Revenue & Customs by 31st January 2009. We have already sent our client’s a questionnaire for completion to enable us to complete their Returns.
If you have not already returned your questionnaire, please do so as soon as possible. If there is any part of the questionnaire you are unsure about or simply would like to discuss any aspect of your Tax Return with us, please contact us accordingly.
The following penalties, interest and surcharges apply for the late filing of your 2008 Tax Return and late payment of your tax liability:
1. Late filing penalty of £100 if your Return is not submitted to HM Revenue & Customs by 31st January 2009.
2. Late payment interest accrues from 1st February 2009 on all tax payments due by 31st January 2009.
3. A surcharge of 5% is levied on your 2007/08 balancing tax payment if this has not been made by 28 February 2009.
4. 2nd Late filing penalty of £100 if your Return is not submitted to HM Revenue & Customs by 31st July 2009.
5. Late payment interest accrues from 1st August 2009 on 2nd payment on account for 2008/09 due for payment on 31st July 2009.
6. 2nd Surcharge of 5% is levied on 2007/08 balancing payment outstanding at 28 August 2009.
As well as these financial penalties for the late filing of your Return, the following drawbacks must also be considered if you choose to prepare your own return or make an incorrect Return:
1. If you leave it late in the day to prepare your own Tax Return using HMRC online software, this has been known to fail on the weeks leading up to 31st January. This could lead to your Tax Return being submitted late and therefore incurring a penalty.
2. If you prepare an incorrect Return, HM Revenue & Customs may enquire into your Tax Return. This could involve detailed correspondence until the enquiry has been settled. In extreme cases the enquiry could even lead to a further enquiry, this time into your company.
3. Enquiries into your tax affairs can be complicated. It is, therefore, likely that you will require GRANTS assistance in bringing the enquiry to a satisfactory conclusion and this will mean you incurring additional fees.
You will see from the points above that it is important for your Tax Return to be filed on time and completed correctly.
Please, therefore, complete and return GRANTS Tax Return Questionnaire before 8th December 2008 to ensure that we are able to prepare your Return before the 31st January 2009 deadline.