Self Assessment - Presentation, sanctions and estimation

When did the self assessment tax return must be submitted?

When completing the Self Assessment Tax Return you work out your tax liability should be paid no later than January 31 of each year. This covers the fee for the periods April 6 to April 5 for the previous year. For example, for the fiscal year April 6, 2005, April 5, 2006 known as the 2005/2006 tax return must be submitted by January 31, 2007.

However, if you can submit your return by 30 September following the end of the fiscal year, the Inland Revenue calculates the amount of tax due before it becomes payable by 31 January. For the 2005/2006 tax year would be the date of September 30, 2006 for taxes due for January 31, 2007.

Planning point: Submit your return by September 30 to ensure your tax is calculated for you before the expiry date of 31 January.

Penalties, surcharges and interest for late tax returns and paying tax

If the self assessment tax return was not filed within the deadline of January 31, £ 100 fine is due. If the return has not yet been filed six months later a further fine of £ 100 is applied. The Tax Commissioner may also apply for the tax and apply daily penalties of up to £ 60 per day.

If the tax is still outstanding after January 31 is charged interest at the prevailing rate.

In addition to interest, surcharges are also imposed. These being 5% surcharge on any tax that is not paid by February 28, and a further 5% surcharge on any tax outstanding by 31 July (being six months after the date the tax became due January 31)

Planning point: If you find it difficult to pay their fees by January 31, then yes you pay by February 28 to avoid the increase of 5%. If you can not pay the full amount then, then try to pay taxes, as far as possible once again by July 31 seconds before the surcharge of 5%.

Car Tax Return Assessment - Using Estimated figures

Sometimes the final data may not be available before the filing deadline of January 31, being ten months after the end of the fiscal year. Therefore, it may be necessary to estimate these quantities.

A return is not normally withheld if estimates are used, but it is useful to provide adequate information to "other information" boxes of tax returns. The omission of adequate information regarding these estimates may result in a request to start. A penalty may also be paid if the Inland Revenue believes that the final figures could have been obtained before the filing deadline.

Planning Point: If you do not know the final figures, that is because of lost documents or who are awaiting further information, however, submit with your return estimates to avoid penalties. If the Inland Revenue does not interrogate the thirteen months after the return filing date will be difficult for them to go back and re-watch your estimated data .......