Dead­line ahead

The dead­line is fast ap­proach­ing for self as­sess­ment tax re­turns

EDP Norfolk - - Business - Philip Hunt of As­ton Shaw, East Anglian char­tered cer­ti­fied ac­counts, ad­vises on what you need to pro­vide

THE OP­POR­TU­NITY to sub­mit a paper tax re­turn to HM Rev­enue and Cus­toms has al­ready passed, and we are fast ap­proach­ing the dead­line for sub­mis­sion of dig­i­tal re­turns. In or­der to en­sure you don’t in­cur any penal­ties, you must make the sub­mis­sion by Jan­uary 31, 2017.

What do you need to be able to sub­mit a dig­i­tal re­turn?

You must be reg­is­tered with HMRC and have a Unique Tax­payer Ref­er­ence (UTR) to sub­mit your tax re­turn on­line. It can take more than seven work­ing days if you are in the UK and up to 21 days if you are abroad to re­ceive your ac­ti­va­tion code through the post, so there is ur­gency if you need to make a re­turn and have yet to reg­is­ter.

What do you need to de­clare?

When you file your re­turn, you will need to de­clare any in­come that you re­ceived in the tax year to April 5, 2016. Each in­di­vid­ual will be dif­fer­ent in terms of their sources of in­come, gains and al­low­able de­duc­tions. How­ever, below are the main sources of the in­for­ma­tion to com­plete your re­turn and de­clare the in­come and gains your are re­quired to de­clare: • Your P60 • Your P45 (if you left a job that year) • P11D ben­e­fits in kind • De­tails of any pay and ex­penses from an em­ployer • De­tails of bank in­ter­est • Div­i­dends from pub­lic and pri­vate com­pa­nies • Any cap­i­tal gains made, be they from shares or prop­erty • In­for­ma­tion on any pen­sion you may have • In­come from trusts • Char­i­ta­ble do­na­tions • Rental in­come • For­eign in­come • Charge­able gains made on in­surance poli­cies or bonds

What fines are there?

If you sub­mit your tax re­turn late, there is an im­me­di­ate £100 fine payable to HMRC. If you fail to sub­mit your tax re­turn af­ter three months, this be­comes a £10 a day fine on top of the £100, which grows to a max­i­mum of £900. If you still haven’t filed your re­turn af­ter six and 12 months fol­low­ing the dead­line you get an ad­di­tional £300 fine, or five per­cent of your tax bill. Yes, you can ap­peal the fine, but your ex­cuses have to be valid and hold up to scru­tiny.

Pay­ment of tax

The bal­anc­ing pay­ment for the year to April 2016 and the first in­stal­ment of tax for 2016/2017 is Jan­uary 31, 2017. My ex­pe­ri­ence is that for some tax­pay­ers, the bill will be un­ex­pected and they will be un­able to pay im­me­di­ately, risk­ing in­ter­est from the due date of a five per­cent fine if the tax is not paid within 28 days. This in­creases by an­other five per­cent if still un­paid by Au­gust 1 and an­other five per­cent if 12 months late. If you have a gen­uine prob­lem in pay­ing the tax, con­tact­ing HM Rev­enue and Cus­toms is al­ways a sen­si­ble idea.

“Each in­di­vid­ual will be dif­fer­ent in terms of their sources of in­come, gains and al­low­able de­duc­tions”

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