Escaping Penalties for Late Tax Returns

Newsletter issue - February 08.

The deadline for submitting personal tax returns for 2006/07 has just passed, and in a few days time the Taxman's computer will be churning out £100 penalties for late returns. If you get one of those unpleasant letters don't panic, or rage, as the penalty may not be due at all.

For example...

  1. If your tax return was issued to you after 31 October 2007, perhaps because this the first tax return you have been asked to complete for several years, you have three months in which to complete it. So the submission deadline for your particular tax return will be later than 31 January 2008. This applies irrespective of what it says on the front page of the return form, which will still refer to the 31 January deadline.
  2. The late filing penalty cannot exceed the tax and NIC outstanding on 31 January. If you have paid all the tax and NI due in advance of 31 January 2008, or a repayment is due, the penalty should be reduced to nil.
  3. If you have a reasonable excuse for not filing your tax return on time you may escape the penalty. However, you will have to file your return as soon as those conditions that prevented you from filing come to an end. It is also pretty difficult to find a circumstance that is accepted by the Taxman as a reasonable excuse. None of the following excuses are accepted:
    • didn't realise a tax return was required
    • the tax return form is too difficult
    • tax affairs are complicated
    • pressure of work
    • failure by your accountant!
    • delays in the post
    • insufficient records.

What our clients say about us...

  • "Paul has provided accountancy services to my company for 2 years now. I can recommend Paul very highly; his skills as an accountant are highly detailed and professional and he is always available to provide advice. One aspect of the way Paul works that I greatly appreciate is a preference to meet face to face when there is a detailed conversation to be had. I personally find this more productive and is a benefit of working with a small accountancy firm that you wouldn't get with the large faceless providers."

    ALISTAIR FAIRWEATHER - PROGRAMME & PROJECT MANAGER, DELIVERING/RESCUING I.T. 7 BUSINESS CHANGE WITH BUDGETS UPTO £50M INC SUPPIER MANAGEMENT

  • "I couldn't ask for more from Paul as an Accountant. Paul has been accountant to Work Relief Charity Recruitment for just over a year now and is proving an invaluable asset. Accurate, knowledgeable, flexible with an emphasis on service delivery, I would recommend Paul's services to any organisation looking for an accounts professional."

    Neil Price - Managing Director at Work Relief Charity Recruitment

  • "Paul was a referral from a family member when I started my business 2 years ago. As this was the first time I had ever run my own company I was totally clueless over the financial side of matters and was worried that I may have made mistakes in any of my accounting. I needn't have worried as after enaging Paul for a set monthly fee he was always there on the end of the phone for all sorts of questions I had and no matter how trivial they were Paul gave me all the information I required and more and did an excellent and painless job at the end of my first year! Couldn't ask for any better to be honest. Just two words - hire him!!!"

    Lee Westrap MBCS - Director - Bulldog IT Services

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Booth & Co  |   The Hermitage  |   15a Shenfield Road  |   Brentwood  |   Essex  |   CM15 8AG        Telephone: 01277 224666    |   Email: info@boothandco.co.uk