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If you have income which has not been taxed or are liable for higher rate tax or have been sent a self assessment tax return by HM Revenue & Customs (HMRC) even though you have no income to declare, you have a legal obligation to complete and submit a tax return as well as paying any tax liability due by certain deadlines. Failure to do so could result in penalties, interest and surcharges becoming payable in addition to the tax liability.

The deadline for submitting a paper tax return is 31st October, following the end of the tax year, 5th April. If submitted electronically the deadline is extended to 31st January following the end of the tax year.

If these deadlines are missed a penalty of £100 will apply, with a further penalty of £10 per day all the while the return is outstanding over the next three months. After 6 months a further £300 penalty or 5% of the tax if greater, will be charged and the same again will be applied if the return is still outstanding after 12 months.

The tax liability also becomes payable in full by the 31st January. Although, where the tax payable exceeds £1000 you may also be required to make provisional payments on account for the following tax year of the same amount, divided into two instalments payable by 31st January of that tax year and the following 31st July. Any balancing payment due, once the tax return has been completed and the final tax liability calculated, after taking into consideration the payments on account, becomes payable by the following 31st January.

Late payment of the tax liabilities will result in interest charges running on a daily basis currently at a rate of 2.5%. Surcharges of 5% each will also apply where the tax remains unpaid after 30 days, 6 months and 12 months.

If the completion of your tax return is a daunting prospect, with deadlines looming and not wanting to pay any more tax than is absolutely necessary, why not use my tax return preparation service. I will provide you with a checklist to assist you in collating the relevant  information  and   supporting documentation required to complete the tax return, letting accounts, capital gains tax computations etc, and calculate your tax liabilities, as appropriate, advising you when payments should be made.