by David Watkinson
It hardly seems 12 weeks since we was preparing last year’s December articles, let alone 12 months. Yet here we are approaching Christmas and, yes you’ve guessed it, tax return time.
If you have not already done so, this is a timely reminder that if you have been issued with a notice to submit a return then you must ensure that your return is received by the tax office electronically on or before 31 January 2017. Failure to do so will result in the tax office issuing you with automatic penalties starting at £100 but which rapidly escalate to £1,600.
If you miss the deadline then you may be able to avoid paying a penalty if you have a reasonable excuse for filing your return late. A reasonable excuse does not include relying on someone else to complete your return but who then lets you down, not receiving a reminder from the tax office to submit your return, or finding the system too difficult. The tax office defines a reasonable excuse as “something unexpected or outside your control that stopped you meeting a tax obligation”.
So what does constitute a reasonable excuse? Well, the tax office guidance gives a number of examples which include:
– Your partner or other close relative dying shortly before the deadline
– An expected stay in hospital preventing you from dealing with your tax affairs
– Suffering a serious or life-threatening illness
– Your computer or computer software failing just before or while you were preparing your on-line return
– HMRC’s own computer or software preventing you from successfully filing your return, or “service issues” in their talk
– A fire, flood or theft preventing you from completing your return
They also talk about postal delays but that would no longer work in respect of this year’s tax return as paper returns needed to be filed by 31st October.
So during this Christmas break, when you are tired of watching The African Queen or White Christmas for the umpteenth time, and watched the repeat of the rerun of the News Review Of The Year (which is only going to be full of the “B” word and the “T” word in any event), why not excite yourself by getting together all your tax return paperwork and getting that return submitted. After all, preventing that penalty is the equivalent of 4 times the normal win on The National Lottery.
Finally, the partners and staff of WatkinsonBlack would like to take this opportunity to wish you all a very Happy Christmas and a Prosperous and, above all, a Healthy 2017.
WatkinsonBlack are pleased to advise on these and other matters. They have considerable experience in all areas of taxation and businesss services, including providing a very cost-effective payroll bureau service. If you want to arrange a no-obligation initial meeting on any taxation or accounting matter then please contact us. Please note that these ideas are intended to inform rather than advise and you should always obtain professional advice before taking any action.
