The Tax Season: (by Alex Byrne of Accounts & Returns Ltd)
Some things stay the same and some things are constantly changing.
People will always worry about their tax affairs because tax is complicated and they do not want to get it wrong. A brown envelope through the door from HMRC sends some people into a spin wondering whether HMRC are asking them to pay more. Some cannot face opening these letters and pass them straight to us. While the tax laws remain complicated, people will always need help.
An annual Budget gives Governments the opportunity to tinker with tax allowances, rates and reliefs and all Governments cannot resist doing so. So almost invariably tax is different every year.
HM Revenue & Customs change the names of their offices and of their officers frequently but their powers to force the production of information are strong and always have been. They can force people to produce personal records such as diaries and computer records. There is very little they do not have a right to see and when they do see them may sometimes draw the wrong conclusions from the most innocent of transactions. People are right to be wary of HMRC.
There has always been a tax season governed by deadlines. The deadlines for submitted personal Self Assessment Returns for a tax year are normally 31st October if you are completing a paper return and 31st January if you are filing a return online. So a tax return for 2011/12 covering the period 6th April 2011 to 5th April 2012 needs to be filed by 31st October 2012 or if online by 31st January 2013.
If you are an employer you have to file an Employer PAYE Returns by 19th May so the Employer Return for 2011/12 has to be filed by 19th May 2012.
These deadlines have been with us for several years now and this has meant that the tax season is as follows –
6th April to 19th May – a busy time dealing with Employers Returns
19th May to say the end of June – a fairly busy time as this is when people who like their Tax Returns done as soon as possible because they want to know what their tax bills will be in good time, seek help
July and August – a quiet time when people like to enjoy any good weather there might be and go on holiday
Sept – Oct - things live up after the summer especially as HMRC tend to advertise the 31st October deadline on local radio
Nov - getting busier as 31st January 2012 is really not very far away now
Dec – Christmas shopping and parties!
Jan – VERY busy as people panic about the 31st Jan deadline
February – steady as we help people who have not managed to get their information together for the 31st Jan deadline.
This has always been the tax season but now we have an added pressure. From this year HMRC are charging daily penalties if a tax return has not been filed in time and still has not been filed by 30th April. So if you still have not filed your 2010/11 tax return (which was due by 31st Jan 2012), you will be running up a bill at the rate of £10 per day! This runs for 90 days so you could have a bill for £900 at the end of it!
So now March and April are busy too.
Some things stay the same and some things are constantly changing.
Offer
If you find it all too confusing and have never used an accountant before, we can help you with your Tax Return starting from £75 (plus VAT) . And if you can come and see us in the “quiet” time of June – July, we will reduce our normal charge by 10%. To take advantage of this Offer click here.
Tax is taxing. Don’t let be. Come and get help.
by Alex Byrne of Accounts & Returns Ltd
