![]() A £300 fine (or 5% of the tax you owe – whichever is greater) if you still haven’t filed after another 90 days.If you fail to file within three months – that is, by the end of April – HMRC can then impose an additional £10 daily penalty for the next 90 days, increasing the total penalty by £900 to £1,000.īut the penalties don’t end at the 90-day mark. The penalty is imposed regardless of whether you owe tax or not. In 2020, some 700,000 taxpayers left it to the very last day – with a nail-biting 26,562 taxpayers leaving it to the last hour! Every year HMRC rakes in millions in fines from those filing late and having to pay penalties and interest.Īnyone who is required to file a return but misses the deadline receives an automatic £100 penalty from HMRC. It will help you to determine how much new business you’ll need to bring in to cover last year’s tax bill, and any payments on account that will be due. This means you’ll know exactly how much you need to pay, and can budget accordingly. Which takes us nicely to the first advantage of an early tax return: Time to Plan AheadĪs they say, forewarned is forearmed! The sooner you complete your Self Assessment, the sooner you’ll get your tax bill. That doesn’t give you much time for tax planning… But the payment deadline for that tax year? It’s the same: midnight, 31st January 2023. The deadline for Self Assessment tax returns for the tax year 2021 – 2022 is midnight, 31st January 2023. But hear us out: there are some compelling reasons to get your tax return sorted out early. That program, along with another called Tax Counseling for the Elderly, offers assistance from IRS-certified volunteers.We know, it feels like the tax year has only just ended, and it’d be nice to chill out for a while before you start worrying about tax again. There's also help: Taxpayers who earn less than $58,000 a year can get free help filing from the Volunteer Income Tax Assistance. ![]() So how should taxpayers deal with such a beleaguered agency? The IRS says make sure all your documents are together when you start out working on your return and to file electronically. "They need to get everybody back in the office as soon as possible, so you just have more bodies working on these issues."Ĭollins' report offers suggestions to address taxpayer problems, including a adding a "customer callback" feature so taxpayers don't have to wait on hold and creating a filing season dashboard on IRS.gov that describes how long it is taking to process paper returns and the percentage of taxpayers who have called the IRS and gotten through. "They should all hands to the pump at this time," he says. In the meantime, one thing the agency should do now, he says, is call IRS employees who have been working from home because of COVID-19 back to the office. Everson suggests IRS workers should go back to the officeįormer Commissioner Everson, who's now vice chairman of the tax consulting firm alliantgroup, supports more funding for the IRS, but says that's a long-term issue. But that package's future is in doubt, and lawmakers have yet to agree to a funding bill for the agency for the current fiscal year. The Biden administration's Build Back Better Act would provide additional funding of $80 billion for the agency over 10 years. ![]() On Friday, press secretary Jen Psaki called on lawmakers to boost funding for the service.
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