Self assessment tax deadline reminder

Individuals are reminded that they have until 31 July to pay the second Self Assessment payment on account for the tax year ending 5 April 2013.  Interest will be charged on all late payments.

Individuals who miss self assessment deadlines should be aware of the financial penalties HMRC impose for late tax payments.

All income tax and capital gains tax for a year must be paid by 31 January following the end of the relevant tax year. 

To the extent that the tax is paid later, tax-geared surcharge penalties may be imposed, which are calculated as detailed below.  Furthermore interest is chargeable for late payment of the on-account and/or the January balancing tax payments and for late payment of surcharge penalties.

Where any tax is unpaid more than 30 days after the 31 January final deadline date for the year, an initial surcharge of 5% of the tax due will be imposed.  An additional 5% surcharge is then applied to tax still unpaid after six months from the due date.  Once twelve months late, a third 5% surcharge penalty is charged.  

Failure to meet the Self Assessment payment on account schedule may lead to a hefty balancing payment burden for the year in the following January, in addition to the interest for late payment.

Furthermore HMRC will look to impose penal surcharges (also carrying interest for late payment) if individuals miss the January payment deadline.

If you have genuine difficulty in meeting the payment schedule there may be ways of mitigating your position, or if you are unsure about your Self Assessment on-account payment obligations, it would be wise to seek advice from a qualified accountant before problems arise.

For further information, please contact Nigel Martin at the office.