New data reveals that 1.5 million people risk incurring fines for missing the Self Assessment return deadline, despite the month-long grace period from HMRC.
Following the 31st January deadline, new research shows that more than one in 10 (12%) of those that are required to file a Self Assessment form still haven’t done so and face financial penalties if submissions are not made by the end of the month.
Lee Murphy, managing director of small business specialist accountancy firm, The Accountancy Partnership, warns of the damaging financial impact that failing to submit Self Assessment forms in the next days may have.
“There is a concerning level of overdue Self Assessment tax returns this year, with 2.3 million missing the initial deadline and 1.5 million still left to submit a week ahead of the penalty fine waiver period. While we understand business owners are under huge pressures, not meeting key deadlines can stunt the progress of an organisation’s growth.
“Interest has been building on all outstanding tax bills and from 1 March penalty fines will be charged. As business begins to resume at pre-pandemic levels for many, a financial cash flow hit from HMRC is the last thing anyone needs. It is still possible to set up a payment plan to spread the expense out, but this needs to be addressed now.
“Those who still need to submit a tax return must be facing immense pressures, but it’s essential to take action to avoid unforeseen complications preventing submission before the end of February. This is especially important for anyone who benefitted from Covid grants that need to be declared.
“If seeking professional support, this should be done as soon as possible. Although the deadline has passed, accountants and finance professionals remain busy, and many cannot necessarily help immediately. Getting support and advice as early as possible is key to reducing the chance of incurring further penalties and interest payments.”
