Paper-based Business Owners Have Halloween Deadline For Self-assessment
The vast majority of businesses have already switched to digital, with 89% of business owners using HMRC’s online self-assessment service
Business owners who still submit a paper tax return have been warned they only have until Monday 31 October to do so.
According to research by Pandle, 89% of business owners now HMRC’s online self-assessment service – but the Halloween deadline is not to be missed by paper-based businesses.
The number of penalties made against taxpayers who make ‘deliberate’ mistakes has risen from 9% to 16% in recent years, with offenders paying between 20-100% penalties in extra due tax.
Self-assessment is the system used by HMRC to collect tax from self-employed people and businesses, or those who have received an income besides their regular salary.
The Making Tax Digital initiative will see all taxpayers to pay and manage their taxes online, and it’s hoped this initiative will be fully implemented by 2020.
Lee Murphy, owner of Pandle, said:
“Small business owners might not be aware but Making Tax Digital is going to mean that they have to keep on top of their finances much more regularly and likely pay tax on a much more regular basis. Gone will be the days when a new business can start and worry about the accounting and tax a year or so later.
“On the downside it’s an extra burden on time and potentially money early in the business’ life but on the upside it should give business owners more up to date financial data leading to better informed decisions early on.
“Rather than waiting to the end of the year to get your accounts in order, small businesses need to start now, especially considering that the transfer over to accounting software may take some time to complete and could even break the deadline if submitted too late.”
Left it to the last minute? Here’s how to complete a self-assessment form.