Tax Return Deadline
All personal tax returns for the year ended 5th April 2018 must be submitted no later than 31st January 2019. Late filing can lead to penalties of over £1,000.
If your return has not already been submitted, or is not in hand, please contact us immediately.
Paying your Self-Assessment Tax
We recommend that you use the instructions here –https://www.gov.uk/pay-self-assessment-tax-bill/overview – to identify ways of paying your tax liability.
Your paying reference is your 10 digit tax reference (“UTR”, as it is often called) plus the suffix “k”. If using the online payment method, select “Cumbernauld”, if required.
For example, if you reference number is 1234567890, your payment reference will be 1234567890k.
Please do not use this example reference to pay your tax!
Impact of late payment
- HMRC will automatically charge interest at 3.25% per annum from 1st February on all late payments
- HMRC will add a fixed 5% surcharge to all unpaid tax outstanding at 28th February
- Paying late can increase the risk of being selected by HMRC for investigation
Personal Tax Account
As part of the “Making Tax Digital” initiative, HMRC have set up Personal Tax Accounts for each taxpayer. If you have not already done so, I recommend that you follow the link here – www.gov.uk/personal-tax-account. Once you have set up an account, you can more easily track your current tax liability, as well as accessing a host of other services.
This should help you identify how much tax is payable on 31st January.
The website indicates that it is possible to set up a direct debit for paying tax, but it is our understanding that this system is not working at present.
We strongly advise you to seek appropriate advice before taking action on any of the points listed above.
If you are in any doubt, please call us for clarification.
About us: Leggate Associates Limited was formed by Andrew Leggate LL.B FCMA FCA CGMA who has over 35 years of tax and accountancy experience in industry and practice, and the practice is managed by Joanne Leggate FMAAT ATT. Our clients range from building subcontractors to multi-million pound concerns and high net worth individuals all over the UK. Please see our website www.leggateassociates.co.uk or follow @LeggateAssoc on Twitter for occasional updates.
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