Yes the filing deadline of 31 January 2013 for 2012 Self Assessment Tax Returns is nearly upon us but what happens if you are late in filing? Well the penalties can be hefty depending upon the length of the delay in filing, and we did an earlier blog on this so go to our archive to read more.

You must pay any tax you owe by 31 January following the end of the tax year too, for example, for the tax year 2011-12 (ending on 5 April 2012) you must pay any tax you owe by 31 January 2013.  But what happens if tax payments are late too? There will be an interest charge and penalties as well depending upon the delay in paying as the following table from HMRC shows:

Penalties for paying late

Length of delay      Penalty you will have to pay

30 days late -     5% of the tax you owe at that date.

6 months late -   5% of the tax you owe at that date as well as the 5% above.

12 months late - 5% of the tax unpaid at that date plus the two 5% penalties above.

The penalties above do not apply to any payments on account that you pay late.

Perhaps there is something in the phrase “I did my tax return early and found inner peace”!

If you have a “reasonable excuse” penalties may be cancelled and the following link to HMRC’s website gives more information:

http://www.hmrc.gov.uk/sa/deadlines-penalties.htm#3

If you need our assistance, please get in touch ASAP, and who knows it may not be too late for us to help!

The above is for general guidance only.  Buick & Co Chartered Tax Advisers and Tax Consultants take no responsibility whatsoever for this blog, its reliability or any actions you take having read it.