Don’t forget to file you tax return

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Small businesses across Bedford are being urged to file their self assessment tax returns early to avoid fines.

Andrew Logan who runs TaxAssist Accountants in Bedford said: “Local businesses must submit their tax returns by January 31 or face a fixed penalty of £100, even if they have no tax to pay or have paid the tax they owe.

“Filing early doesn’t mean you have to pay any tax due early, but if you are due a refund, HMRC does not wait until January 31 to pay you. So make sure it’s you that earns the interest on any tax refunds, not them.”

The £100 late payment penalty is now automatic and will not be reduced, even if business owners play their tax on time. Returns which were three months late faced an additional £10 a day penalty up to a maximum of £900 and even harsher penalties applied if they were filed more than six months late.