Tag: What Happens If You Don’t Submit a Self-Assessment Tax Return?

What Happens If You Don’t Submit a Self-Assessment Tax Return?

tax accountants in Birmingham

What Happens If You Don’t Submit a Self-Assessment Tax Return?

Many people in the UK, such as independent contractors, landlords, and directors of corporations, are required by law to file a self-assessment tax return. But neglecting to file your return or missing the deadline can have major repercussions, such as fines, interest, and even legal action. By ensuring that your tax return is filed accurately and on time, working with tax accountants in Birmingham helps you stay stress-free and avoid needless fines. Professionals from Integrity Accountancy Services Ltd and knowledgeable accountants in Birmingham can provide you with right guidance and support if you’re unclear about your requirements regarding self-assessment.  Hence, to help you to understand all these consequences, we have prepared this blog. Here, we will discuss the consequences of missing the self-assessment tax return deadline and how to correct any errors are shown below.

Immediate Late Filing Penalties

There is a definite deadline for submissions of self-assessment forms that is sometimes in the first month of the year—January 31st. After that final date is gone, HMRC fines the company immediately and imposes strict action. This date applies to the online submissions, and you can face certain consequences such as:

All these can be avoided if you take help from a professional tax accountant in Birmingham who can tell you all about the deadline and submission to avoid penalties and fines.

Penalties for Extended Delays

If the delay goes beyond the third month, then the penalties are added more significantly, and the interest is also doubled. For example:

  • The fine of £10 is added every day after three months’ delay and can go up to £900.
  • The fine will also increase after six months and can go up to £300 or 5% of unpaid taxes are added.
  • After a year, a fine of an additional £300 and 5% is added on unpaid taxes. It will also go higher for deliberate evasion, or penalties will be imposed for skipping the submission intentionally.

So, if you don’t want to be hit by these late penalties, then hiring an expert accountant from a reputable firm such as Integrity Accountancy can do wonders. They can ensure that you never miss the deadline.

Interest on Unpaid Taxes

Sometimes, even if the taxpayer can submit all their returns but skips the unpaid taxes or fines, it will accumulate interest. The authorities, such as HMRC, will add a daily interest on the original payment, and it will become difficult to pay the outstanding debt.

How Accountants in Birmingham Can Help

  • professional accountant will help you in verifying the tax and will also calculate liabilities to lessen your tax burden.
  • They will also help you in negotiations if the penalties and fines go beyond the limit.
  • Lastly, they will ensure that tax records are maintained in the precise manner to prevent any overpayment.

HMRC Investigations and Legal Consequences

Apart from fines, there are legal penalties imposed on the company as well as the individuals failing to pay timely taxes and returns. There will be an investigation done by HMRC if they suspect any tax evasion and deliberate attempt to evade the taxes. These authorities have certain rights and obligations, such as:

  • They will demand bank statements and all the documents to find any corruptions and loopholes.
  • They will also conduct audits to find any undeclared incomes.
  • HMRC can also take legal action against your business interests and people if they fail to pay the taxes.

Hence, to avoid them, you need to consult tax accountants in Birmingham who will ensure that your tax obligations are met on time.

Difficulty Securing Loans or Mortgages

If you fail to comply with all the rules and regulations, your business will have difficulty in securing loans and mortgages. There are many lenders and investors who will refuse to cater to your business against any mortgage or otherwise. You will also fail to secure any investment or personal loans in the future if you struggle to pay the taxes on time. All your mortgage applications and services will be rejected and delayed. Sometimes late repayments or trying to evade taxes can lead to missed credit opportunities, and your plan to expand your business in the future will also go in vain. To avoid all this hassle, you can take help from any expert counsellors and accountants that can file your taxes on time. And will make sure financial services are not interrupted anytime.

Conclusion

There may be severe financial and legal repercussions for not filing a self-assessment tax return, including penalties, interest charges, and possible HMRC investigations. Dealing with tax accountants in Birmingham can guarantee adherence, reduce tax obligations, and avoid needless anxiety. Getting help from reputable firms such as Integrity Accountancy Services who can provide professional solutions to help you file your taxes on time. So, it’s crucial to pay taxes on time to protect yourself and your business from HMRC.