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The January 31st 2016 deadline is drawing near… you must complete your Personal Tax Return now.
If you haven’t already thought about it, you need to complete your Personal Tax Return now. This is an HM Revenue & Customs requirement for all self-employed individuals, sole traders and those who receive rental income.
As a contractor, you are legally obliged to submit your Personal Tax Return to HMRC by 31st January 2016. This applies to all sole traders, individuals who are self-employed and people who receive rental income.
Fail to complete your Personal Tax Return in time and you will be issued with a £100 late fee from HMRC.
Avoid the fines
HMRC employs a strict penalty if you forget to complete your Personal Tax Return. Even if you do not owe any tax, you will still be charged a non-refundable late fee of £100.
In addition to the £100 fine first issued, HMRC will start increasing the penalty by £10 per day after three months if your Personal Tax Return is still outstanding.
To save on unwanted fines, it is crucial to submit your Personal Tax Return as soon as possible.
Breakdown of possible fines you could incur
| Late by: | Penalty issued: |
| 1 day: | Automatic fixed penalty of £100. Applicable even if no tax is owed. |
| 3 months: | £10 per day up to a maximum of £900. This is in addition to the above penalty. |
| 6 months: | £300 or 5% of tax due, the highest amount. This is in addition to both penalties above. |
| 12 months: | £300 or 5% of tax due, the highest amount. You may be asked to pay 100% of the tax due instead. Again, in addition to the above penalties. |
Need help? Speak to a Personal Tax Specialist now!
Churchill Knight & Associates Ltd provides a specialist Personal Tax service.
We understand that Personal Tax Returns can be both time consuming and confusing. Our experts are here to simplify that for you, by taking the stress and confusion away.
To get started, simply instruct Churchill Knight to complete your Personal Tax Return by emailing personaltax@churchill-knight.co.uk or calling 01707 871610 (option 6)
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The Churchill Knight blog is regularly updated with helpful content for contractors and freelancers – especially articles that answer the most frequently asked questions about umbrella companies! Please pop back shortly to see the latest articles written by Andrew Trodden (Marketing Manager) and Clare Denison (Marketing Executive).