Pictured above: Nigel Lomax
Small businesses across Shropshire should make a New Year's
resolution to complete their self assessment tax returns now and
avoid hefty fines, a local tax specialist has warned.
Nigel Lomax who runs TaxAssist Accountants in Shrewsbury said
that although the official deadline for payment is not until 31st
January next year, many owner managers get caught up in the
Christmas and New Year rush, ending up paying unnecessary
penalties. He comments:
"Christmas and New Year can be a hectic time for small
businesses. We all want those vital repairs, home improvements and
decorating done in time for Christmas, so local traders are in big
demand. And for local retailers, Christmas gift buying and New Year
sales can be one of their busiest periods. Before you know
it, the January deadline for payments and returns is looming. HM
Revenue & Customs will levy an automatic penalty of up to
£100 if your return is received late"
Nigel added: "If by the end of February you still haven't paid
your tax bill, you may face a 5% surcharge added to your bill.
If after six months you have still not paid, another 5% may
be added on top of the amount you still owe. Whilst all the
time the tax remains overdue, interest will be accruing on a daily
basis (currently charged at 3%).
So, unless you want to needlessly lose a significant amount of
your hard-earned income to the taxman, the advice is to keep on top
of your tax return and payment deadlines. This will become even
more important next year, as both surcharges and penalties are set
to rise from January 2012, applying to 2011 returns."
The self assessment payment deadline is the same whether you
file on paper or online, said Nigel. "Local businesses should have
received a self assessment statement of tax owed, but if they
haven't they would need to work out tax due themselves or with
their advisers, or by registering with self assessment online".
TaxAssist Accountants Shrewsbury is a local business itself,
providing tax and accountancy advice and services to more than 400
small businesses.