Small businesses are being reminded they need to complete their online tax returns well before the 31 January deadline, rather than risk being landed with hefty fines.
With January often being one of the busiest periods for businesses, particularly in the leisure and retail industries, local tax specialist Andrew Thornton, is urging bosses not to get distracted and miss the deadline, risking penalties from HM Revenue & Customs (HMRC).
Andrew Thornton, who owns TaxAssist Accountants in Otley, said: “The 31st January tax deadline still sneaks up on many small businesses, resulting in nearly a million UK taxpayers receiving immediate £100 penalties for missing the deadline each year.
“This penalty applies even if they have no tax to pay, or have, in fact, already paid the tax they owe. Returns which are three months late face an additional £10 a day penalty up to a maximum of £900 and even harsher penalties are applied if the delay is over six months.
“The future of tax collection, including replacing the annual tax return with quarterly reporting and a new points-based penalty system, are still being debated, but in the meantime we’re urging the local business community not to leave it too late.”
TaxAssist Accountants Otley is a local business, operating across Otley, Guiseley and North Leeds, providing tax and accountancy advice and services purely to small businesses.