Personal Tax

Missed the January Tax Deadline?

Have you missed the January tax deadline? If so, it is important to act now as the penalties and fines will only increase.

More than 700,000 taxpayers are reported to have missed the January tax deadline, so you are not alone.

This is what you must do now.

  • File your personal tax return
  • Pay over any personal tax due

Missed the January Tax Deadline – Filing

The personal tax return was due to be filed by 31st January 2019. If you missed the January tax deadline and haven’t filed your return you will automatically be issued with a late filing penalty of £100.

Appealing the penalty

The filing penalty can be appealed.

The first thing to understand is why was a tax return issued and was it issued correctly? For example HMRC have updated their guidance to state that Directors are no longer automatically required to complete a tax return. By successfully removing the requirement to file a tax return, the penalties associated are also removed.

Reasonable excuse

Secondly, if a tax return was due why wasn’t it filed? Do you have a reasonable excuse? HMRC have heard every single reason going so this can be a challenge but if you do have a genuine reason they will at least consider your appeal.

Typically the appeal is usually based on something unexpected or outside of your control. To strengthen your case the sooner you file your tax return the more chance it will be successful. For example an appeal based on your computer or software not working is more likely to be successful if you filed the tax return a few days later after the problem was fixed.

Potential penalties

Finally if you missed the January tax deadline you must still file your tax return. By acting now you will at least reduce the penalties down to a minimum.

For example filing a tax return by 28th February 2019 will incur a penalty of £100. Waiting just 5 months later and filing on 28th July 2019 increases the penalty to £890.

Missed the January Tax Deadline – Payment

The personal tax payment was due on 31st January 2019. If you missed the January tax deadline and haven’t paid over the tax due then you must do this immediately.

HMRC charge interest on any late payments at a rate of 3.25%. As an example a liability of £1,000 paid 1 month late would therefore incur interest of approx. £2.18.

A penalty of 5% is charged on any payments which are over 1 month late. Therefore in the example above the charge increases by £50 if the payment is not made until March.

If you are struggling to pay your personal tax liability then call HMRC on 0300 200 3822.

If you have the funds to pay your personal tax liability here are the options on how you can pay your personal tax.

Estimate your personal tax liabilities

If you want to have a rough guide of how much interest and penalties you will be charged please use the HMRC calculator. Estimate Self-Assessment Penalties.

Get in touch

As a firm of Chartered Accountants we can assist in getting your tax affairs up to date. We will always consider grounds to appeal any penalties with HMRC. By appointing ourselves as your tax agent we will communicate with HMRC directly on your behalf. Don’t delay any longer and call us on 07961 048484 or email us at [email protected]

DISCLAIMER – Please note that the content contained in this article is for general information only and is not a substitute for professional advice – read our full disclaimer