The tax return 2013 season has just started and at the time of writing there were some 850.000 overdue tax returns still waiting to be returned to HM Revenue and Customs.
This is one of those times where doing nothing about it will be very costly, very costly indeed!
I have been receiving penalty notices on some of my new clients where I have managed to bring them up to date and not in my 25 years of working with tax returns have I seen such a turn on people who do not file their tax returns on time, or leave them forever and a day.
It’s really not worth holding back your tax return for whatever reason anymore. Paying the fine when it is sent and not sorting and preparing the return is preparing yourself for a massive shock when you do eventually send it in, because all the time day by day and week by week you could be running up fines nowhere near the tax payable on the return in the first place.
There comes a time where you need to act and start making this number one priority if you are required to complete a self assessment form annually.
Some years ago, what was the Inland Revenue were grateful when you did submit your tax return even though it was late and with a £100 or £200 fine at the most everyone could sort of live with it, but now HM Revenue & Customs have decided that none submission should be looked upon very seriously and any deterrent to make you toe the line in penalties and charges will be levied automatically and added to your liability, return or no return.
Over the past few months there have been a number of press releases from HMRC encouraging people to ‘sortyourtax’. Here at www.sortmytaxout.co.uk (they copied my name by the way!) I have been trying to persuade people to get their tax returns in irrespective of the liability it may create. If you don’t feel you have the money to settle the tax bill once your tax return goes in it is nowhere near the consequences of the fines going in on top. They won’t go away and they are here to stay by the looks of things.
These are the situations my clients felt they were in and therefore not submitting their tax return:
“I am that far behind now once I file my returns I won’t be able to pay my tax and they will make me bankrupt.”
“I just haven’t got round to it and basically when they send me a fine for £100 plus some interest I pay it, that will keep them happy until I get round to it.”
“I’ve had a rubbish year so I don’t think I had to pay any tax so it’s not urgent.”
“I’ve been deducted tax at source so when I put my return in it should even itself out.”
“I’m in the building trade and my contractors stop me 20% so they will owe me a bit so I should be OK.”
“If I put my late returns in now I will get a full investigation.”
“I’m a professional and a little too embarrassed to approach anyone to discuss this with.”
“Once the tax man has finished with me, my accountancy fees will be the final nail in the coffin.”
ALL OF THESE ABOVE ARE QUOTES FROM MY NEW FAMILY (CLIENTS) THIS YEAR THAT ALL ADMIT THEY WISH THEY COULD HAVE FOUND ME SOONER TO HELP WITH THEIR TAX RETURN PROBLEMS.
All these statements above, unless under extreme circumstances such as fraud or knowing tax avoidance, are incorrect perceptions we have of HM Revenue & Customs.
The worst thing to come out of 90% of these late returns is that once we have filed the tax returns and calculated what they have to pay or not pay in some circumstances the position was nowhere as dire as the client first thought.
If you have overdue returns or if you have just had your 2013 tax return –
Have a look at my site.
Don’t be worried whatever your situation.
Let’s work together and do what’s needed and then get them in.
This way everyone is happy.