CHESTERFIELD accountants Shorts are urging people to avoid unnecessary penalties by submitting their 2012 tax returns by January 31.
Until last year, the penalty for filing a tax return after the 31 January deadline was £100. However, the Government decided to make the penalties a lot tougher, according to Shorts, and if you file your 2012 Return after 31 January 2013 the penalties will be as follows:
· One day late – a fixed penalty of £100
· Three months late - £10 for each of the following ninety days up to a maximum of £900
· Six months late – £300 or 5per cent of the tax owing, whichever is higher
· Twelve months late – a further £300 or 5per cent of the tax owing.
Shorts stated that if you file your 2012 Tax Return on November 2, 2013, and you owe £10,000 tax, your penalty will be £1,500 which is much more than the £200 you would have paid under the old system which you could have avoided by paying the tax on time.
Shorts stressed that all you need to do to avoid the penalties is file your tax return by January 31. Contact Andrew Grant on (01246) 559955 for more information.