An accountant in the region has sent out a warning to SMEs on the importance of filing in self-assessment tax returns early
David Ingram, who runs TaxAssist Accountants in Gosforth, Newcastle, said: “Local businesses must submit their online tax returns by January 31 or face an on-the-spot penalty of £100 for filing even a day late, even if they have no tax to pay or have paid the tax they owe.
“Filing early doesn’t mean you have to pay any tax due early, but if you are due a refund, HMRC will return this to you sooner. Make sure it’s you that earns the interest on any tax refunds, not the taxman.”
The payment penalty is automatic, even if businesses pay tax on time. Returns which are three months late face an additional £10-a-day penalty up to a maximum of £900 and harsher penalties if more than six months late.