New government rules for self assessment tax returns are even tougher on late submitters

People who miss the deadline to submit their self assessment tax return now face harsh new financial penalties as the exchequer attempts to accumulate as much money as possible in order neutralise the deficit. Those who complete paper self assessment tax returns that are received by the Inland Revenue after the 31st of October 2011, will be hit with a fine of a hundred pounds, even if no income tax is chargeable. However, people filing self assessment tax returns online have a stay of execution until January 31st 2012 to declare their earnings to the government. More than 10 million self assessment tax returns are due in relation to the 2010 – 2011 financial year, and recent history proves that late declarations can again be expected by HMRC. Those who have still failed to send their self assessment tax return three months after the cut off point will be punished by an additional penalty of ten pounds a day while it remains outstanding, up to a maximum of nine hundred pounds. If six months elapse and a person has still not supplied their self assessment tax return, the Inland Revenue will charge an extra penalty of five per cent of the tax due, or three hundred pounds, whichever sum is greater. After twelve months, those who have still failed to submit their self assessment tax return will be charged a further five per cent of the tax due, or three hundred pounds, whichever sum is greater. Peter Lashmar who runs a firm of accountants in Hampshire, said: “The government would certainly prefer people to submit their self assessment tax returns over the internet, because that is easily the cheapest option for them.” “Given the current financial hardship of UK PLC, it’s not really a surprise that the government is handing out harsher penalties to people who miss the deadline.” He added. For independent advice about self assessment tax returns contact Lashmars at www.lashmars.co.ukself assessment tax returns, self assessment, tax returns, personal tax retu