Tax deadline looming for self-employed, warns local specialist

Entrepreneurs across Llanelli are being urged not to miss next month’s deadline to register with the tax office as self-employed.

 

Roger Bowen who runs TaxAssist Accountants in Llanelli said: “Any local businessman or woman, who has started working for themselves any time during the tax year 2010/11, now needs to register with HMRC by October 5. Previously, they had to register within three months of becoming self-employed. They then need to put October 31 firmly in their diary for filing their self-assessment tax returns on paper.”

“Llanelli has a wealth of entrepreneurs to whom this tax deadline applies. Whether they’re providing products, services or consultancy, if they work for themselves, they must register, or face the prospect of hefty fines.

“As the Government looks to the Revenue to collect as much money as they can in the current climate, tough new HMRC rules mean a clampdown on late registrations, late returns and late payments.”

Accidentally registering for self assessment late, could lead to penalties of around 30% of any tax owed. And late filing of self assessment tax returns will now be punished by an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time. After three months, additional daily penalties of £10 per day will apply, up to a maximum of £900.

After six months, a further 5% of the tax due will be charged, or £300 – whichever is greater. After a year, another 5% or £300 charge will be added and in some cases a penalty of up to 100% of the tax due will be imposed.

TaxAssist Accountants Llanelli is a local business, operating across Carmarthen, Llanelli and Swansea, providing tax and accountancy advice and services purely to small businesses.