Tax return penalties!

HMRC have introduced a new penalty system for anyone filing self assessment tax returns late for the tax year 2010/11.  Under the new scheme a return received just 1 day after 31st January 2012 will receive an £100 penalty rising to £1,600 if the return is still outstanding after 12 months – even if you owed no tax!  If you did owe tax then the penalty can rise to as much as 100% of the tax due.  For full details please see the HMRC website here.

Do I need to do a tax return?

You may not realise that you have to complete a tax return, but ignorance is not an excuse in HMRC eyes and per their own guidance (available here) they normally expect a tax return if you are:

-  Self employed

- A company director

- Receive income from property

- Have income from overseas

- Earn £100,000 or more a year (even if taxed under PAYE)

- You have made capital gains or disposed of

- You’ve lived abroad

- You’re a trustee

Where can I get help?

At Norton Accountancy we can take the stress out of your tax returns and ensure you are paying the least tax possible (legally!).  We always offer a free, no obligation initial consultation so why not get in touch with us.  We’ve got offices in Cardiff, Newport and Bristol – our phone numbers are at the top of the website.