Submit Return On Time To Avoid Late Filing Penalty
London, England -- (SBWIRE) -- 10/29/2015 -- For those who are intimidated by the prospect of preparing their tax return, help is at hand. While it may be incredibly daunting at first glance, there is no reason why people can not face the challenge head-on and complete their tax return on time. However for those who can not face the challenge no mater what, the London accountants Alexnder Ene have offered to help out with a 15 per cent discount for the April 2015 tax return. They have however added that in order to get the 15 per cent discount, the individual must have the relevant information delivered to their office before the end of November 2015. This offer follows a recent publication in a local news paper describing how people find it difficult to locate an accountant for self employed tax return when they need one.
For anyone who is brave enough to go ahead and prepare the tax return by themselves, once the core section that everyone must fill out is completed , it becomes just a matter of addressing the schedules that are relevant to the different income sources during the tax year.
-When Is The Tax Return And Tax Payment Due?-
Once a person has completed the form he or she will have determined their tax liability. This information needs to be submitted and any money owed should be paid by January 31st following the year of assessment. Year of assessment basically means April 6th to April 5th of the prior year. If this is confusing, let's put it in more complete terms: the tax year starts on April 6th of 2014 and runs through April 5th of 2015 (you may see it referred to as the 2014/2015 tax year), so the return for the tax year must be completed and filed by January 31st of 2016 to be in on time.
If, a tax payer manages to file their return by September 30th following the conclusion of the tax year, the Revenue can calculate the amount of tax owed prior to the due date of January 31st. What does this mean? In a nutshell, the date would be September 30th, 2015 for the tax that comes payable on the 31st of January, 2016.
-How They'll Nick You For Late Returns and Tax Payments-
If a tax return is late and is submitted after the January 31st deadline, a £100 fixed penalty will be charged. If this isn't motivation enough and the tax return is not submitted for another three months, there will be daily penalties of $10/day up to a maximum of £900. Should, for some reason an assessment is not submitted by the January 31st deadline, interest can and will be charged at the current rate on tax due. In addition to the above, there will be a 5% surcharge on any tax amount that is unpaid by the 28th of February (too bad they don't go by the Leap Year calendar!), then if the tax liability is STILL not fully paid up by July 31st, there is an additional 5% surcharge.
-The Art of Estimation (aka Using Estimated Figures Wisely)-
It is possible for an individual to not have an absolutely predictable income. Consequently, final numbers may no be ready to go by the filing deadline of January 31st, since technically it's only ten months after the end of the tax year. In this case, it is necessary to figure out a good estimate for this amount.
A return will not be rejected if a tax payer uses estimated figures. It is very helpful to utilize the "other information" boxes on your return at this point, providing adequate information. If the Revenue feels that details are missing, it could cause an enquiry to be opened. And really, who wants that? In addition to an enquiry, penalties may be charged if they feel that the needed figures could have been obtained before the filing date.
Food For Thought: Should it be the case that final figures are impossible to locate, (be it awaiting more information, replacement of lost paperwork or other issues that keeps a person from having the necessary numbers), the best thing is to file using an estimated figure so as not to get slapped with penalties. If, after thirteen months from the filing date the Revenue still hasn't audited a tax return, it will be much more tasking for them to go back and review the estimated numbers.
For more information, visit us:
Contact: Alexander Ene
Address: 336A Regents Park Road, London, N3 2LN
Telephone: 020 8343 2626