Tax Man Warns of New Fines for Missing Filing Deadlines

by Property118.com News Team

16:48 PM, 6th January 2012
About 7 years ago

Tax Man Warns of New Fines for Missing Filing Deadlines

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Tax Man Warns of New Fines for Missing Filing Deadlines

The New Year countdown for filing tax returns has started – with a timely reminder from HM Revenue and Customs not to be late.

Individuals and partnerships must submit their tax return for the year ending April 5, 2011, on or before January 31 – and pay any tax due.

All filings must be electronic tax returns via HMRC’s online gateway.

Tax payments may also include the first advance payment on next year’s tax, with the second installment due on July 31.

Any taxpayers filing after midnight on January 31 face an automatic £100 fine. Unlike previous years, even if no tax is due or the amount is less than the fine, the penalty for late filing remains £100.

Only exceptional circumstances preventing filing will be accepted – these include a close family death, losing financial records in a fire or flood or similar excuses.

First-time filers need to register on the HMRC website – and must do so in time for HMRC to send a user ID and activation code by post. These can take at least seven working days to process.

“Missing the January deadline will mean that will face penalties and we don’t want them to – we want the tax returns, not the penalties. We want people to file online and on-time, and avoid facing a completely avoidable penalty,” said an HMRC spokesman.

Taxpayers who have incomplete records should consider filing a tax return by January 31 and paying the tax they believe is due, even if the finer details still need completing.

Tax rules say the return can be amended at any time until January 31, 2013, so revised figures can be submitted.

Paying the estimated tax stops surcharges and interest. If too much tax is paid, HMRC will refund the overpayment with interest, while paying in the estimated amount reduces charges and interest in the event of an underpayment.



Comments

Doreen Marr

22:49 PM, 8th January 2012
About 7 years ago

At the risk of sounding stupid, which I recognise I must be to have ended up in this situation.  In 2007 we (my husband and I) purchased two properties which we rented out. The followng year we purchased a further property, but in my name only.  During these years we pumped money into the properties as the mortgage was greater than the rents, Two years ago with the change in interest rates, the mortgages reversed and they are now showing some profit.  My problem here is that I failed to declare the rent to HMRC.  Now don't prejudge me here, it was not for any other reason other than for the fact I was heavily subsidising these properties, so I just assumed the losses would eventually roll forward and be offset against the properties when they moved into a positive cash flow.  Now tax was not one of my strong points and it was not something I really followed.... except for these last few months when I everywhere I looked it seemed to be telling me to file a return. Plus the properties are now turning a profit. Last week I had an appointment with an accountant I took my records along which are all uptodate and go back to 2007 when we purchased the properties.
The records are in great detail and clearly show the losses I incurred in the earlier years.  You can imagine the grief the accountant gave me, which is understandable, but he feels I should only file the tax return for this year and leave/miss the losses from the earlier years as a result of my foolishness for not filing. He feels this will be the easiest way around this problem.  What I am concerned about is......is this good advice?  Have I got a good accountant and best advice. I know this is not an easy subject nor the task I am asking (given him). He says I could be fined heavily and said much much more.  I realise this and therefore it may not be worth bringing up the earlier years but my losses in those years are very very heavy and good now be offset against the earnings of the properties.  Can I ask for some advice from other people or accountants that may read this.Any advice could be of help, other than bending my ear for being stupid, the account has done nothing but that and at the moment we cannot move on from it.

Mark Alexander

23:55 PM, 8th January 2012
About 7 years ago

The advice you have been offered concerns me deeply. A very good friend of mine is Steve Sims, one of the "Dummies Guide" authors. His best seller is "Understanding and paying less property tax for dummies". I'm away on holiday this week but if you call my office tomorrow and speak to Neil he will be able to put you in touch with Steve to get some advice. The office number is 01603 489118

Doreen Marr

1:56 AM, 9th January 2012
About 7 years ago

Thank you Mark, I shall definately contact Neil tomorrow and I shall report how I get on.  Thanks again.

Ian Ringrose

14:02 PM, 9th January 2012
About 7 years ago

For tax questions I find http://www.accountingweb.co.uk/ very useful.

For tax questions I find http://www.accountingweb.co.uk/ very useful.

Personally I think you should “come clean” as it is the right thing to do. It is never good advice to tell someone to break the law.

I am no tax expert, but I think HMRC fines normally depends on how much tax should have paid. HMRC also discount the fines a lot of you come clean before they find out themselves.

Stephen Fay (http://propertytribes.ning.com/forum/topic/listForContributor?user=2q47ah1zwvr6h) is an accountant that posts on http://propertytribes.ning.com, I have not used his services, but if I was looking for an accountant myself he would be on the short list.

13:56 PM, 12th January 2012
About 7 years ago

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14:00 PM, 12th January 2012
About 7 years ago

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