UK tax returns - What next?
You have missed the 31 January filing deadline for UK tax returns. What happens now?
If you owe tax for the 2003/04 tax year, then you will be charged a £100 penalty and interest will start accruing from 1 February on a daily basis. In addition, a 5% surcharge will also be charged from 1 March on any outstanding tax.
If you still haven’t filed your return by 31 July, a further £100 penalty will be incurred which may increase subsequently to £60 per day. A further 5% surcharge will also be incurred.
If you really are remiss and haven’t filed your 2003/04 tax return by 31 January 2006, then the additional penalty charged could be up to the amount of tax owing.
The longer you leave your tax return, the more expensive it will be, therefore, file your outstanding return as soon as possible, and while you are in the swing of it, get going with completing your 2004/05 tax return (issued during April).
As well as penalties and interest being charged, filing your return late also exposes you to a higher risk of the Revenue enquiring into your tax affairs, so it really is worth getting into the habit of filing your returns on time.
“The Inland Revenue have said I don’t need to file a return so I’m OK” we hear you say. Don’t be lulled into a false sense of security. It is your responsibility to tell the Revenue of any change in your circumstances and there is a deadline by which you have to tell them of any changes. If you miss this deadline, then again penalties may be due. If your circumstances have changed, check that you still don’t have to file a return.
On a more pleasant note, you may be due a repayment. Filing a return will enable you to claim any repayment due to you. The Revenue will not automatically repay back any overpayment of tax you have made, so claim it – it’s yours and not the taxman’s.
For assistance with your UK tax returns or your UK taxes generally, contact Juliet Connolly from UK Expat Limited, Chartered Accountants and Chartered Tax Advisers, on +44 (0)118 924 2724 or by e-mail at email@example.com, website www.ukexpat.net.