At the time of writing this article, we are less than a week away from the end of the tax year. Which means millions of people in the United Kingdom are getting ready to file their tax returns. Whether you are self-employed, a business partner or the executor of an estate, and more, you are required by law to completed and submit a ‘Self-Assessment’ tax return. The deadline each year in the UK is the 31st of January. So that means from the 6th of April until the 31st of January of the following year, you have the time to prepare and submit your tax returns. If you do not submit by this time, you will be subjected to fines or penalties.
Submitting your own tax return can be a daunting tax, that is why we are here to help you! Hopefully this article is of some help, but if you would like to discuss your business further with us then get in touch. Please click here and complete the form or email us at contact@atroaccountancy.co.uk and we will get back to you as soon as possible! If you are unsure whether you need to submit a self-assessment or not, we can also help with that, a general good rule of thumb is any income received outside of regular employment.
Why it’s important to file your tax returns on time
As a business owner it is good practice to stay on top of your taxes. It shows to customers, employees and investors that your business is running well. Filing on time will also help in future when requiring additional finances.
The most immediate reason to make sure you file on time is to avoid fines and penalties. This can be damning depending on how late you file your returns. Your business will also build a reputation with HMRC for late submissions which could affect you in the future. The current fines for late submissions are the following:
- One day late up to three months – £100 fine.
- Three months late – daily £10 penalties for up to 90 days.
- Six months late – 5% of the tax liability or £300, whichever is greater.
Being on top of your paperwork is needed when applying for credit cards, loans or even just a business bank account. Banks and other institutions may require you to show proof of financial circumstances and one way they do that is looking through your tax returns. And if you are not up to date, or worse, behind on your paperwork this will come across negatively. This will factor into their decision on whether you are able to repay loans, borrowed credit and more.
Thanks for reading this post, we hope you were able to learn some useful information. If you ever need help with financial services such as your tax returns then we are available to help. Please click here and complete the form or email us at contact@atroaccountancy.co.uk and we will get back to you as soon as possible!