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Self Assessment - vital statistics.
By Heather Platts BA(Hons) | Updated August 2, 2007
The self-assessment system imposes the major burden for tax compliance on the taxpayer, rather than on the tax authorities and affects all non-corporate UK taxpayers, including executors, trustees and individuals.
This will likely include you if you:
- are sent a tax return each year
- have income which is not taxed at source
- are liable to higher rates of income tax
- are either self-employed or company directors
HMRC will not examine the returns as they arrive. Instead a ‘process now, check later’ approach is in operation. HMRC will make enquiries into tax returns which they believe contain inaccuracies.
The deadlines for sending in tax returns are:
- 31 January after the end of the tax year if you want to work out your own tax bill
- 30 September if you ask HMRC to work out the tax
- 30 December if you file the return over the internet (29 December if using the Electronic Lodgement Service) and you want an underpayment (not exceeding £2,000) to be collected via the PAYE system.
The penalties for late returns are:
- £100 (automatic) - return up to 6 months late
- £200 (automatic) - return more than 6 months late
- 100% of tax due (max) - return more than 12 months late
- £60 per day (maximum) for continuing delay - if approved by the Commissioners for HMRC.
There is also a fine for late payment of tax called ’surcharge’. Surcharge is payable on tax underpaid if overdue for more than 28 days, as follows:
- after 28 days - 5% of the tax unpaid
- after 6 months - a further 5% of the tax unpaid
The self assessment return comprises the basic return plus additional pages covering different types of income. HMRC send the pages they think you need, but you are responsible for obtaining any other pages necessary.
We here at Cumulo have extensive experience in dealing with personal tax issues and returns, we are happy to talk about your concerns and if you are worried or need advice on the impact of self-assessment please contact us.
Topics: Self-assessment Tax Return |
