There’s no denying the fact that you have responsibilities as the owner of an enterprise – your business operations, for one, rely heavily on you. But one other responsibility you have as a business owner, particularly in the UK, is to complete and file your self-assessment tax return either on or before the deadline of the 31st of January. The importance of filing your tax return on time cannot be ignored, especially if it’s your first time doing so. If this is the first year you are expected to file your tax return, you also have to consider the process of registering with HMRC and waiting for them to send you your activation code by post.
If you think you have time enough before January 31st, well, you may be right – but do you really want to risk it and end up getting fined? We think not. Following are a few important reasons why you shouldn’t delay:
- The hassle of being penalised
One thing you definitely want to avoid when it comes to filing your self-assessment tax return is being penalised. Penalties for filing late can set you back a substantial amount, and the amount of these penalties increases over time. For instance, if you file late (after the deadline of January 31st) you will automatically be fined £100. And, if you fail to file after January 31st, you will have to deal with a £10 fine for each day of late filing until the 90th day mark, which is the 30th of April.
A fine of £300 will also be imposed if you still have not submitted your self-assessment tax return after the 30th of April. It is also worth noting that this fine is variable – if the tax you should be paying is higher than £300, then rather than pay the £300 set fine, you have to pay 5% of what you owe.
- More time to get help from the experts
If your business deals with the simplest business transactions or you have no additional income apart from the income from your business (for instance, if you have no other assets or job), then you may not need expert help. Otherwise, it is always better to seek help from the experts, such as an accountant who can help you complete your tax return with no errors. The thing about the self-assessment tax return is that it is easy to make mistakes – and if you are unsure of what you are doing, the risk of making a mistake is doubled.
However, if you need help from an accountant, you have to remember that they get busier in the period leading up to the tax return deadline. You may even have to pay an additional fee if you begin looking for an accountant in January, at the last minute. You don’t want an accountant to be too busy to work with you, and you want to avoid having to pay any extra charges also. But if you begin completing your tax return as soon as possible, you can eliminate these risks as well as find a good accountant from the accountants central London offers, such as GSM & Co, with whom you can also build a good and strong relationship.
- Additional concerns
There’s yet one more reason why it’s best to handle your tax return as soon as you can – this doesn’t apply to everyone, but it helps, nonetheless. If you would like HM Revenue & Customs, for instance, to collect the tax your business owes by altering your tax activation code, you have to submit your self-assessment tax return by the 30th of December. Keep in mind that you will only be allowed to do this when your tax payment is not over £3,000 and if you have a tax activation code with HMRC.