Remember, Remember 5th OCTOBER: Self-Assessment Deadline Day Draws Near
Businesses warned they will face fines of up to 30% of their due tax if they fail to pay by January 31st
HM Revenue and Customs (HMRC) has reminded UK small business owners that they must register for self-assessment, by Wednesday 5th October ,in order to receive their tax return.
Businesses owners and the self-employed require a tax return to obtain all necessary information to be able to pay their taxes by 31 January.
Those who fail to pay in time can be fined upwards of 30% of their due tax, while there is a deadline of 31 October for those who still use paper forms.
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.
Over 10m people filed a self-assessment tax return for 2014/15 with this number expecting to increase.
Currently, one in seven people are now self-employed in some way with services such as Airbnb or other buy-to-let services providing new business avenues for people.
Tina Riches, national tax partner at Smith & Williamson, said:
“While missing the notification deadline would not automatically cause a penalty to arise if you still pay the appropriate tax by the due dates, there is a very real possibility of HMRC being unable to assign your payment appropriately without the UTR.
“The consequences could be late fines or payments, which may prove challenging to cancel. It is vital to contact HMRC if you think you may need to file a tax return.”
You can register online for self-assessment here.