£100 Tax penalty could be just the tip of the iceberg, warns local tax specialist

With around ¾ million small business owners missing the January 31st tax deadline, small business owners across Llanelli are being urged to file quickly to avoid further fines.

Roger Bowen who runs TaxAssist Accountants in Llanelli said: “Businesses and individuals who are yet to submit their tax returns need to act fast. HMRC will now have issued them with a £100 penalty, claiming approximately £73m of small business owners’ hard earned income, but this is just the tip of the iceberg.”

HMRC adds on a late payment penalty of five per cent of any tax outstanding after 30 days- and the rate of late payment penalties grows if the tax gets over six months old. For late filing of tax return, a daily penalty of £10 per day will be incurred if the return is over three months late- up to a maximum of £900 and even harsher penalties are applied if the delay is over six months. And these late filing penalties are in addition to the £100 automatic penalty mentioned above.

“In some circumstances, such as serious family illness or bereavement, HMRC may waive penalties but most other reasons for late filing can be difficult to justify. We have helped many businesses and individuals by completing the appeals process for them” said Roger. “HMRC has really clamped down on late returns, last year issuing an estimated £1billion in late filing penalties. Whilst we are urging people not to delay in filing, first make absolutely sure you haven’t been issued a tax return in error; for instance your business may have ceased trading and HMRC may not have the changes on record.”

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