Joss & Co Accountants - Latest News
HMRC Security Alert
HMRC continues to issue warnings over fraudulent emails.
Emails which claim to be from HMRC, encourage recipients to click though a replica of the HMRC website. Recipients are then asked for their credit card or debit card details, enabling the criminals to access their accounts.
Joan Wood, director of HMRC online commented -
The increase in reports is partly due to improved awareness of this scam. However, I have no doubt that more of these 'phising' emails are in general circulation than ever before.
HMRC will do everything possible to ensure those receiving this email know what steps to take to protect their information, and we are working closely with other law enforcement agencies to target the criminals behind this serious crime and see them brought to justice'.
A couple of reminders:
- Limited companies with 31 March 2019 as the date on which their financial years end, must file their Accounts with HMRC and Companies House before 31 December 2019, and any Corporation Tax due must be paid before 31 December 2019.
- Sole traders and partnerships with financial years ending between 06 April 2018 and 05 April 2019 must file their Tax Returns with HMRC before 31 January 2020, and any Income Tax due must be paid before 31 January 2020.
Tax Return Late Filing Penalties
The Late Filing Penalty are as follows -
- For Tax Returns for the year ended 05 April 2019, the latest filing date is 31 January 2020. If that date is missed, an initial fixed penalty of £100 will be incurred, even if there is no tax due to be paid, and even if any tax due has already been paid. The fixed penalty is for filing the Tax Return late.
- If a Tax Return has not been filed by 30 April 2020, an additional penalty of £10 per day will be incurred, subject to a maximum of £900.
- If a Tax Return has not been filed by 31 July 2020, a further penalty will be incurred fixed at £300 or 5% of any unpaid tax, whichever is the greater.
- If a Tax Return has not been filed by 31 January 2021, a further penalty will be incurred fixed at £300 or 5% of any unpaid tax,whichever is the greater.
The penalties set out above are for filing a Tax Return late. In addition, further penalties will be incurred when tax is paid late. The late payment penalties are as follows -
- Tax paid 30 days late will incurr a penalty of 5% of the unpaid tax.
- Tax paid 6 months late will incurr a further penalty of 5% of the tax unpaid.
- Tax paid 12 months late will incurr a further penalty of 5% of the tax unpaid.
The late payment penalties are on top of interest at the normal statutory rates.
According to my reckoning, a taxpayer with a balance of tax to pay of £100 filing his/her Tax Return 366 days late will incurr Late Filing Penalties totalling £1,010, Late Payment Penalties totalling £15 and a year's interest. A pretty scary prospect.
Phone Andy Joss - 07961 433320