Have you missed the HMRC deadline to register you untaxed income?
A question we are often asked is ‘What should I do if I for registration of untaxed income?’.
The deadline for informing HMRC that you have a new source of untaxed income is 6 months from the end of the tax year. So, for the year 2017/18 HMRC should have been informed by 5 October 2018.
But what should you do if the deadline slips?
The first thing is not to panic.
In theory HMRC can fine you for late-registration, but in practice this generally doesn’t happen. The easiest way to do this is to phone HMRC’s helpline on 0300 200 3600 or fill in the online form.
The second is thing is not to ignore the paperwork when it arrives.
HMRC will write to you with a Unique Taxpayer Reference – called a UTR for short. You will also receive a notice to complete a tax return – this will include the date by which you need to submit you return. This will either be:
- 31 January following the end of the tax year – for the 2017/18 tax year this is 31 January 2019
- 3 months from the notice date if this is later
If you miss the HMRC deadline for these they will fine you, unless there are very exceptional circumstances such as a serious illness preventing you from completing the return.
The penalties start at a flat £100, but if you’re more than 3 months late then they come in at £10 per day.
That’s all on top of the tax, which if you are late registering could well mean that you’re late paying.
The due date for paying the tax is 31 January following the end of the tax year.
Late payment of tax will attract interest charges plus penalties – and the penalties can be as much of 10% of the tax payable for payments more than 6 months late.
So, once you realise that you have missed the HMRC deadline, the sooner you contact HMRC and start the process of getting up to date, the less likely you are to fall into the penalty regime.
If you need any advice on this, get in touch and we’ll explain what you need to do.