Self Assessment Tax Return - Penalties for being late

You’ll get a penalty if you need to send a tax return and you miss the deadline for submitting it or paying your bill.

You’ll get a penalty of £100 if your tax return is up to 3 months late. You’ll have to pay more if it’s later, or if you pay your tax bill late. You’ll also be charged interest on late payments.

Estimate your penalty for Self Assessment tax returns more than 3 months late, and late payments.

You can appeal against a penalty if you have a reasonable excuse.

Let me help you file yours today to avoid being late.

https://www.gov.uk/estimate-self-assessment-penalties

Help to Save

Get help with savings if you’re on a low income

You can save between £1 and £50 each calendar month. You do not have to pay money in every month.

You can pay money into your Help to Save account by debit card, standing order or bank transfer.

Read more https://www.hiclassaccounting.co.uk/tips-and-tricks

Do you run a Limited Company? Saving for your future could save you tax now

Your limited company can contribute pre-taxed company income to your pension. Because an employer contribution counts as an allowable business expense, your company receives tax relief against corporation tax, so the company could save up to 19% in corporation tax.

Your employer pension contributions must abide by the rules for allowable deductions. The rules state that the pension contributions should be ‘wholly and exclusively’ for the purposes of business. To figure out whether this is the case, HMRC looks for certain evidence, for example whether other employees are receiving comparable remuneration packages.

Another benefit is that employers don’t have to pay National Insurance on pension contributions. The National Insurance rate for 2020/21 is 13.8%, so by contributing directly into your pension rather than paying the equivalent in salary, you save up to 13.8%.

This means that in total, your company can save up to 32.8% by paying money directly into your pension rather than paying money in the form of a salary.

Depending on your circumstances, this may or may not be more beneficial to you than paying personal pension contributions.

Talk to a financial adviser to find out what is best for you!