"This is the case even where someone can subsequently show that no tax was due or even a tax refund was due. Which is a concern for people that have received a 'notice to file' from HMRC incorrectly, as they no longer have trading or letting income and are having all of their income automatically accounted for via PAYE."
"But while HMRC will cancel a tax return filing obligations when there should be no additional income tax due, it can be very difficult to speak with a HMRC official this close to the 31 st January deadline. For many taxpayers it will be easier to file a return in the next few days, even if there are no income or capital gains to report. As the timely submission of a tax return ensures that no late filing penalty will be charged by the Revenue."
"If the taxes due aren't settled by the 31 st January deadline, HMRC will impose late payment interest, at a relatively punitive rate of 7.75%. If taxpayers still have taxes underpaid at the end of February, the Revenue will automatically add a 5% surcharge on the amount that they need to settle."
At least 3 million taxpayers still need to file Self-Assessment returns before the 31 January deadline. Late submission after a clear HMRC 'notice to file' triggers an automatic £100 penalty, even when no tax is due or a refund is owed. Some taxpayers received a 'notice to file' incorrectly despite having no trading or letting income and being taxed through PAYE. HMRC can cancel filing obligations but contacting officials near the deadline can be difficult. Filing on time prevents the £100 penalty. Any income tax, capital gains tax and class 4 NICs owed must be paid by 31 January, or interest and surcharges apply.
Read at London Business News | Londonlovesbusiness.com
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