The Self Assessment tax return deadline is coming up on the 31st of January. That might seem like a long way off from this side of Christmas, but it’ll creep up before you know it. The penalties for sending HMRC a late tax return start at an eye-watering £100, and they just keep snowballing from there. On top of that, HMRC tends to get busier as the deadline gets closer. Get your skates on and talk to RIFT to make sure your Self Assessment paperwork hits the taxman’s desk on time.

RIFT is all about keeping you and your money safe. That doesn’t just mean saving you time and money by claiming your tax refunds and filing your tax returns. It also means making sure you always stay off HMRC’s Naughty List.

The cost of filing late

With a maximum of £1,600 in total fines the taxman can hurl at you for filing a late return, RIFT will make sure you never get tripped up by a rule or deadline. Here’s what you have to watch out for if you miss the 31st of January cut-off point for Self Assessment:

  • An automatic £100 late filing penalty – even if you don’t owe a penny!
  • Daily £10 penalties stacking up to a total of £900.
  • An additional penalty of £300 or 5% of the tax owed (whichever’s more) if you’re over 6 months late – then the same again 6 months on.

Self Assessment: not just for the self-employed

One of the biggest reasons why people miss the Self Assessment deadline is that they never even realise it applies to them. Some of them even ignore it when HMRC sends them a reminder or a warning. When the taxman’s expecting a Self Assessment return from you, you really can’t afford to disappoint him - even if you’re completely sure it’s a mistake.

For example, here are some of the reasons why you might need to use Self Assessment, even if you’re on the books:

  • You’re a partner in a business partnership.
  • You have money coming in from renting out a property.
  • You make tips or commission at work.
  • You have income from savings, investments or dividends.
  • You have money coming in from abroad.
  • You’ve claimed a tax refund for over £2,500 of expenses.

Tax refunds and the Self Assessment deadline

That last point is an important one. If you’ve claimed for over £2,500 in expenses in your tax refund, HMRC will have opened a Self Assessment account for you. That account won’t just close automatically, even if you no longer need it. That means HMRC will be chasing you for a tax return each year, whether you owe money or not.

If you’ve had a demand for a Self Assessment return and either don’t understand why or think it’s a mistake, get in touch with RIFT straight away. We’ll quickly look into your situation and either:

  • Complete and submit your paperwork for the 2020/21 tax year.
  • Close your Self Assessment record if you no longer need it.

Avoid the Fine! Hit the Deadline!

Don’t let the 31st of January sneak up on you. Get in touch with RIFT to sort out your Self Assessment paperwork well before the deadline passes and the penalties start kicking in.