People who failed to meet the 31 January deadline for payment of outstanding tax face escalating penalties if they do not settle up as soon as possible.

Steve Carpenter, Tax Manager at Maidstone-based DSH Chartered Accountants and Business Advisors, said: “If, for whatever reason, you haven’t managed to file your return or make your self-assessment tax payment by the deadline you should rectify this sooner rather than later.

“Unfortunately, anyone who missed the filing deadline will be subject to an automatic £100 fine and interest will be charged on any outstanding tax. To avoid further penalties, action should be taken as soon as possible. Interest will be charged on the outstanding amount at a rate of 4.5% per annum until the liability is cleared, so it is worth paying as soon as you can.”

If the debt has still not been cleared by 28 February then a 5% surcharge will apply, with a further 5% charge if the balance is still outstanding on 31 July.

“HM Revenue & Customs (HMRC) has said that extra time may be given to those taxpayers that are genuinely unable to pay the amount owed,” continued Steve Carpenter. “Although interest will continue to be charged until the tax is paid, the surcharges will not be levied provided you have proposed a payment schedule to the Revenue.”
He added: “However, if you do have a problem with cashflow, it is extremely important to notify the Revenue as soon as possible as once the surcharges have been levied, it is too late to have them cancelled.”

To find out more about DSH Chartered Accountants and Business Advisors’ services call 01622 690666 or visit www.dsh.co.uk