Self-assessment deadline at the end of this month, “penalties and surcharges may apply”…
ACCA (the Association of Chartered Certified Accountants) reminds taxpayers that they face a fine if they fail to meet the 31 July self-assessment deadline, and will be charged a further £100 penalty if their 2006-07 tax return, for which the deadline passed on 31 January 2008, has not been sent in.
Furthermore, a number of taxpayers will have to make ‘payments on account’. Normally, after tax deductions at source and tax credits on dividends, each payment will be equal to half of the previous year’s tax liability.
The details for payment are as follows:
• 31 January in the tax year and 31 July following the tax year. If a second payment on account for the tax year ending on 5 April 2008 is required, then 31 July is the date by which it should be paid.
• A final balancing payment was due on 31 January 2008 for the tax year which ended 5 April 2007.
• Where this payment was not made by the January deadline, interest on late paid tax would be due and where the payment had still not been made by 28 February then a 5% tax driven surcharge would have applied.
• Where the payment is still outstanding then it must be made by 31 July 2008 or a further 5% surcharge will be applied.
• A second automatic 5% surcharge may be implemented if tax payment was due on 31 January 2007 and it has not been paid in full by 31 July 2008.
Chas Roy-Chowdhury, head of taxation at ACCA, explains: “The tax system is ‘fine driven’, with taxpayers readily penalised for late payment. This is an example of the taxman fining to change taxpayer’s behaviour.
“For those taxpayers who missed the 31 January tax return filing deadline, the July 31 deadline is critical. Having already been fined £100 for missing the first deadline, they will suffer from a further £100 fine if they miss the second deadline. Therefore taxpayers should ensure that their completed returns are submitted as soon as possible.”
Self-assessment forms can now be completed and submitted online, and aside from ease of use there are a number of advantages to following this route.
Online tax returns are processed faster, and therefore any money owed will be repaid more quickly. Additionally, as the form is completed tax is calculated automatically; so you know immediately what is owed, and by whom.
To complete the self-assessment form online go to www.hmrc.gov.uk/sa/file-online.
If self-assessment becomes a problem, professional advice is available.
A Chartered Certified Accountant can be found by looking on the ACCA website at www.accaglobal.com/publicinterest/finding.
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Notes to Editors
1. ACCA is the global body for professional accountants. We aim to offer business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management. We have 325,606 students and 122,426 members in 170 countries worldwide.
2. ACCA believes that globalisation of business requires one set of reporting standards. We favour principles-based, not rules-based standards, which is why we support the worldwide implementation of IFRS.
3. ACCA believes that tax systems should be transparent, simplified, fair and certain.
4. Complying with regulations affects SMEs disproportionately, which is why ACCA urges governments and standard setters to ‘think small first.'’
For further information please contact:
For further comment about tax changes, please contact: Chas Roy-Chowdhury, ACCA Head of Taxation phone: +44 (0)20 7059 5976 / + 44(0)7710 707 516 e mail: chas.roy-chowdury@accaglobal.com
Andrew Swailes, ACCA Newsroom phone: +44 (0)20 7059 5823 e mail: andrew.swailes@accaglobal.com