Self Employed Warned not to Miss Hidden Holiday Tax Self Assessment Deadline
Self-employed people are required to pay their own tax. They must fill in an annual Self-Assessment tax return. The deadline for self-assessment tax payment is 31 July. The Association of Chartered Certified Accountants (ACCA) feels that self-employed must not ignore the deadline before going to summer vacations otherwise they may have to face heavy penalties.
There are currently about 4.5 million self-employed people in United Kingdom. ACCA says that it is necessary for self-employed and as well as people falling in higher tax brackets, corporate directors and any other person with more than one source of income to make on account payment as a chunk of their annual tax payment. The failure to make such payment may result in penalties being imposed by HMRC, HM Revenue and Customs.
The Head of taxation at ACCA, Chas Roy Chawdhury said that self-assessment tax payment deadline has come at a very bad time. School kids are having summertime vacations and most people have planned family breaks.
He further stated that having to deal with tax payments is the last thing people want to do at this time but this cannot be delayed until people come back from vacations. The costs of not paying on time or submitting incorrect amount are high. The current penalty is 5% of tax due which can increase as the payment gets delayed.
He continued that self-employed people in UK increased by 8% as compared to last year and due to this increase many people will be facing 31 July deadline for the very first time and further this deadline is not that much broadcasted. There is a risk that many taxpayers may not be able to submit on time and HMRC will be expecting to gather some fines as they do not accept unfamiliarity as an excuse.
ACCA utters that anyone who has having problems with self-assessment can contact HMRC. However any taxpayer who needs guidance should always check the credibility of adviser.
Chas Roy Chawdhury said that anyone, with no professional qualification or affiliation with monitored body, can call himself an accountant, so be sure of the person who is advising you in tax or financial issues.