When choosing an umbrella company to work with, cost is always going to be a…
Did you know that more than two million people missed the self-assessment tax return deadline in 2022?
Unfortunately – even if you submit your tax-return at one minute past midnight – you will be charged.
We’re hoping you all remembered this year…but if not, here’s a quick rundown of your options.
For those of you new to the self-employed life, consider this an advanced warning of what can happen if you don’t put January 31st in your calendars!
I am more than three months late submitting my tax return…
In this scenario, you will have to pay HMRC a penalty fee of £10 for every day you fail to submit anything. This will continue for a maximum of 90 days.
Over six months late?
If you still haven’t filed your tax return by July 2023, you will either be charged 5% of the tax owed or issued a fine of £300 (whichever is greater).
12 months and counting
Contractors who are over a year late with their tax return will have to pay 5% of the tax owed at this point in time.
What if I can’t afford what I owe?
‘Time To Pay’ is an agreement through which you can pay back your tax bill in instalments. However, in order to qualify you must have submitted your latest tax return, owe less than £30,000 and you must have applied for the arrangement within 60 days after the deadline has passed.
I’ve worked through an umbrella company this year…do I still need to submit a tax return?
Luckily for you we’ve already written a blog on this exact topic! In short, whatever tax your umbrella has paid on your behalf will be deducted from the overall amount due.
Remember, it is always best to contact HMRC if you need support or advice with your tax bill.
Looking for a complaint umbrella to take tax matters off your plate? Give us a call on 0203 967 6846 and we’ll provide you with a payment illustration.