Deadline Dilemma: 1.1M UK Taxpayers Face Soaring Penalties

This year, more than 1.1 million UK taxpayers failed to meet the January 31st self-assessment filing deadline, this reveals a concerning 10% increase from the previous year, as highlighted in recent HM Revenue & Customs (HMRC) data: https://www.gov.uk/government/news/a-record-115-million-tax-returns-filed-by-the-deadline.

This lapse is poised to significantly boost HMRC's revenue, with late filers confronting immediate fines of ￡100, coupled with additional penalties for delayed payments, totalling at least ￡110 million.

Despite a record-breaking 11.5 million individuals filing on time, the notable surge in late submissions raises serious concerns about the financial outlook for the remainder of the year.

While HMRC expresses gratitude to those adhering to the deadline, there are lingering concerns about the financial repercussions for the 1.1 million individuals who missed it.

If you failed to meet the self-assessment deadline and your company was already grappling with financial challenges, you could now find yourself navigating a storm of penalties, such as the below:

• Late filing incurs an immediate ￡100 penalty, even if there is no additional tax to pay or if the tax due is paid on time.
• After three months, additional daily penalties of ￡10 per day are imposed, up to a maximum of ￡900.
• After six months, a further penalty of 5% of the tax due or ￡300 (whichever is greater) is applied.
• After 12 months, another 5% or ￡300 charge is levied, whichever is greater.

It is imperative for those who missed the deadline to promptly evaluate their options concerning HMRC debt. The cumulative effect of these penalties has the potential to create severe financial challenges across various industries, with the construction sector already being prominently highlighted in our recent post from last week: https://www.dhirubhai.net/feed/update/urn:li:activity:7158113822719840256.

First thing first...don't bury your head in the sand, take prompt, proactive steps to find a solution for HMRC debt. Avail of our free initial case review today to assess the options available to you.

What happens when you contact Bell & Company?

1.? A specialist is assigned to your case where a thorough due diligence is conducted, we ask you detailed questions and review all supporting documentation.

2.? We invite you to a consultation and provide you with a tailored strategy that we know will yield the most favourable, commercial conclusion.

Reach out to Bell & Company today to explore your strategy, call us on 0330 159 5820 or send us an email at [email protected]