Missed the tax return deadline

Missed the tax return deadlineI am afraid I left my tax return until the last minute, and when I came to submit it, I had problems and I struggled to reach HMRC on the phone too. I ended up submitting my return on 1 February in the end- what penalties can I expect?

Patrick, Poole 

The reason you may have struggled to reach HMRC on the, is because some staff were on strike on 31 January.

As a result of the strike action, HMRC have agreed that penalties will not be charged for returns that were filed on 1^stor 2^ndof February. Furthermore, interest will also not arise on any payments in respect of income tax received on 1^stor 2^ndof February either.

Normal penalties and interest charges will apply to returns filed or payments made on 3^rdFebruary onwards, and remember the penalty regime is much more severe this year.

If you are finding it difficult to manage your tax affairs, your local TaxAssist Accountant would be happy to take care of them on your behalf.

We provide tax and accountancy services in Poole and throughout the UK - http://www.taxassist.co.uk

Problems with paying tax

Problems with paying taxI’m self employed and I’ve only just prepared my tax return. As a result, I’ve only just found out that I haven’t put enough aside for my tax liability. What should I do?

Evie, Hampstead

Your balancing payment for 2010/11 and the first payment on account for 2011/12(if applicable) are due by 31 January 2012, together with your tax return.

If you are struggling to pay your tax, you should call HM Revenue & Customs’ (HMRC) Business Payment Support Service (BPSS). HMRC will ask you probing questions about the business and your cashflow, to ascertain why you can’t pay your tax. If they think you genuinely cannot pay your tax they may grant you an extension to settle your taxes in or agree a payment plan. However, they do not reduce the amount outstanding and they will still charge you interest.

Even though you can’t afford to pay your tax, make sure you still file your return before 31 January 2012. Otherwise, you will be charged an automatic penalty of £100.

If you don’t feel confident in negotiating with HMRC, feel free to contact your local TaxAssist Accountant. They would be happy to liaise with HMRC on your behalf.

We provide tax and accountancy services in Swiss Cottage and throughout the UK - http://www.taxassist.co.uk

I can’t pay my tax

I can't pay my taxMost of my tax is collected via PAYE, but I have a rental property which I make a small profit on. I have recently drafted my tax return for 2010/11 and my tax liability is £1,500, which I just can’t afford, especially with Christmas coming up. What can I do?

Holly, Evesham

You could ask HM Revenue & Customs (HMRC) to collect your tax liability gradually from your employment income by adjusting your tax code. In order to do this, make sure that box 2 on page 5 of the tax return is blank before you file your return and the return is filed by 30 December 2011.

Please note, anyone can request to have their 2010/11 tax liability settled like this, provided their tax liability is under £2,000 and they submit their return by 30 December 2011 (from next year, the limit will be increased to £3,000).

Alternatively, there may be scope to negotiate a Time to Pay Arrangement with HMRC, which is effectively a payment plan.

If you would like to discuss your difficulties with settling your tax liability further, please do not hesitate to contact your local TaxAssist Accountant.

We provide tax accountancy services in Evesham and throughout the UK. http://www.taxassist.co.uk

Missed the tax return deadline

Missed the tax return deadlineI received my paper tax return earlier this year and totally forgot to complete and send it to HMRC. Will I now get fined £100?

Aidan, Canterbury 

No, because you still have the option to file your return online with HM Revenue & Customs (HMRC) and as an incentive to go paperless, HMRC allow until 31 January 2012 for submission. Provided you successfully file your return online with HMRC by this date, you will not be charged the £100 penalty.

Following the introduction of a new penalty regime this year, a late return will cost you a £100 penalty- even if there is no tax to pay or you pay the tax due on time. Under this new penalty regime, taxpayers will face much harsher penalties and the longer the delay; the larger the penalties.

If you would like some assistance with filing your return or would like an accountant to deal with it on your behalf, please feel free to contact your local TaxAssist Accountant.

We provide tax accountancy services in Canterbury and throughout the UK. http://www.taxassist.co.uk

Tutors and coaches

Tutors and coachesI do some private tuition in addition to my job and I have read that the Revenue have launched a campaign aimed at tutors and coaches. Is it likely that I will be affected by their campaign?

Callum, Basingstoke

The Tax Catch Up Plan for Tutors and Coaches is an opportunity for tutors and coaches to come forward and declare any unreported income and pay the tax they owe. The Plan is open until 6 January 2012 and those coming forward are likely to face lower penalties than if HM Revenue & Customs were to find out first that they were not paying enough tax.

If you have any income to report and don’t come forward, HM Revenue & Customs have a variety of legal powers and access to information to identify you, such as information from academic, sport and leisure sectors, and a ‘web robot’.

If you would like to discuss the Tax Catch Up Plan for Tutors and Coaches further, please feel free to contact your local TaxAssist Accountant.

We provide tax accountancy services in Basingstoke and throughout the UK. http://www.taxassist.co.uk