Small businesses across Newport and Gwent are being urged to avoid spiralling penalty charges by ensuring they meet the filing deadline for their tax return.
John Thomas, who runs TaxAssist Accountants, in Newport, said: “Last year 890,000 taxpayers received an automatic late filing penalty of £100, even if they were only one day late in filing. For a delay in excess of 12 months, penalty charges can spiral to in excess of £1,600. We don’t want any local businesses to be caught out.
“The £100 penalty is applied, even if there is no tax to pay or you pay the tax due on time.
"It can work the other way too. Some small business owners might be due a tax refund, so the sooner they file the sooner that money can be working for them in their bank account.”
The deadline for businesses and taxpayers who choose to file their tax returns on paper is October 31, while those who file online have until January 31, 2016.
Last year, 10.24 million tax returns were filed by January 31; 14.5 per cent of which opted for the paper option.
Apart from the immediate £100 penalty for late filing, subsequent fines are:
• After three months, additional £10 per day penalties up to a maximum of £900
• After six months, a further £300 penalty or five per cent of the tax due, whichever is greater
• After 12 months, another £300 charge or five per cent of the tax due, whichever is greater
TaxAssist Accountants Newport is a local business, operating across the region, providing tax and accountancy advice and services purely to small businesses.
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