Flint Bishop

Still time to avoid hefty fines, warns local tax specialist

Pictured above: Nigel Lomax

 

Small businesses across Shropshire should make tracks 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 though the official deadline for payment had passed, owner managers don't want to end up paying additional unnecessary penalties.

"The start of the year can be a hectic time for small businesses and before you know it, you've missed the deadline. Unfortunately HM Revenue & Customs will levy an automatic penalty of up to £100, but 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.

 

 

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Article published by Midlands Business News on 28 January, 2011

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