According to the ICAEW, data recently published by a fee protection insurance firm suggests that over the last three years, there has been a 64% increase in the number of people penalised for deliberate errors in income tax returns.
Learn here everything about how to avoid tax penalties due to failure in filing a tax return correctly!
What are the UK tax penalties for errors when filing a tax return?
Several tax penalties can be charged by HMRC, like inaccuracies in your tax return, wrongdoing relating to VAT invoices or dealing with excise goods.
The basic tax avoidance penalties in the UK are the following, based on the amount of tax potentially lost:
When should you file a tax return?
A Self Assessment return for a particular year can be submitted from the day after that tax year ends. For example:
- The end of the 2021-22 tax year is 5th April 2022 (which means you can still file your tax return this year with us!)
- A tax return for the 2021-22 tax year can be submitted from 6th April 2022 onwards.
Is it better to submit my tax return early?
Absolutely! There are several advantages to submitting your tax return early in the year, like:
- Getting the money from your tax refund sooner;
- Claiming back all your allowable expenses, which allows you to minimise that tax bill;
- Giving yourself more time to prepare for Self Assessment - you will know exactly what you owe, so you will have more time to pay it over a longer period, which helps with planning your cash flow!
Do you need to register for Self-Assessment?
Yes, you need to register for Self-Assessment if:
- You are self-employed;
- You are under the CIS (Construction Industry Scheme);
- You have other income and gains from either the UK or abroad.
The only exception is when you are an employee and don’t have the untaxed income to report to HMRC.
Tax returns can be stressful and paying them can be even worse! But getting your Self Assessment in as soon as possible can help alleviate some of the worrying and we help you with all the bureaucracy!
We encourage everyone to read our blogs and free tax refund calculators so you can learn more about how tax affects you!
To avoid any tax penalties and to claim your tax back, we claim your tax rebate for you!
Our process is fast, simple (it will only take a few minutes!) and reliable. Besides this, your tax rebate will always be sorted out by an accredited accountant.
Just download our app to claim your tax return now!