Tax expert issues New Year tax warning
PUBLISHED: 13:00 02 January 2011
A WESTON-based tax specialist is urging small businesses across Somerset to start the new year by completing their self assessment tax returns now - and avoid potentially hefty fines.
John Mayer, of TaxAssist Accountants, said that although the official deadline for payment is not until January 31, many owners may have forgotten to complete their returns in the Christmas and New Year rush.
He said: “Christmas and New Year can be a hectic time for small businesses.
“Before you know it, the January deadline for payments and returns is looming. HM Revenue & Customs will levy an automatic penalty of up to £100 if your return is received late.”
“If by the end of February you still haven’t paid your tax bill, you may face a five per cent surcharge added to your bill. If after six months you have still not paid, another five per cent may be added on top of the amount you still owe. Whilst all the time the tax remains overdue, interest will be accruing on a daily basis (currently charged at three per cent).
“So, unless you want to needlessly lose a significant amount of your hard-earned income to the taxman, the advice is to keep on top of your tax return and payment deadlines.”