Latest news
Its your money!!
In business, we all face the same problem: Managing our cash flow effectively and ensuring all debts…
read more…
The National Minimum Wa…
The National Minimum Wage (NMW) is a minimum amount per hour that most workers in the UK are entitle…
read more…
Self Assessment deadline

HM Revenue & Customs (HMRC) has provided guidance for tax agents and advisers to help you manage the 31 October 2014 Self Assessment deadline.

Keeping informed
Sign up for an email alert from HMRC to receive the latest tax news for agents and tax professionals.

Important changes when filing paper tax returns
If your client misses the Self Assessment filing deadline this year they will be immediately liable for a ?100 late filing penalty. The penalty will apply even if there is no liability or if any tax due is paid in full by 31 January 2015.
These new penalties will apply to all Self Assessment tax returns from 2013-14 onwards. The fixed ?100 penalty for failing to file a tax return on or before the filing date will therefore apply to:
? paper returns received on or after 1 November 2014
? online returns received on or after 1 February 2015

Daily penalties of ?10 per day will also take effect if the tax return is still outstanding three months after the filing date. So if your client files a paper return after 31 October 2014, they will be liable to a daily penalty on 1 February 2015 - that's three months earlier than online filers. All the more reason to file their tax return online.

Using HMRC Online Services
There are many advantages to filing online instead of by paper, including automatic calculations, faster processing and later deadlines. Follow the links below to find out more.

Self Assessment for agents and advisers
Guidance to help you set yourself up to manage clients' personal tax affairs under Self Assessment including a link to the Self Assessment for Agents online service.

Agent authorisation
As a tax agent, adviser or accountant, you must be formally authorised by an individual or a business to deal with HMRC on their behalf.
Online client authorisation - how to use HMRC Online Services
Using HMRC forms 64-8 and FBI 2 to apply for client authorisation

Paying Self Assessment
How to pay Self Assessment
There are various electronic payment methods available to enable your clients to pay what's due including a Budget Payment Plan that offers a way for your clients to pay their Self Assessment tax by making voluntary regular payments towards their future tax bill.

If your client chooses to post their Self Assessment payment to HMRC, please ask them, where possible, to use their computer-printed payslip. The payslip can be found at the foot of Self Assessment statements of account and payment reminders such as the SA309 series. If your client doesn't have the computer-printed payslip, then you can download form SA361.

To ensure your client's payment is processed correctly, please only use the latest version of payslip SA361.

Download payment slip SA361 (PDF 80K)

Problems paying HMRC
This guide summarises the actions you need to take if you know in advance that your client's payment to HMRC is going to be late or if they know they are going to have problems making a payment.

General information
Having a reasonable excuse for missing the deadline
Your clients won't have to pay a penalty if they have a reasonable excuse for missing the deadline. There's no hard and fast rule on this but usually the delay must be completely due to an exceptional or major unexpected event that's outside their or your control.

Time limit for notifying chargeability
Your clients must notify any chargeability for Income Tax/Capital Gains Tax for 2013 -14 by 5 October 2014 or a 'failure to notify' penalty may apply. The penalty can't exceed the amount of tax and/or Class Four National Insurance contributions outstanding at 31 January 2015. So if a customer pays the amount due by 31 January, any penalty for a failure to notify would be reduced to zero.

Applying the right Capital Gains Tax rate
If your client has made chargeable gains in the 2013-2014 tax year it's important to establish when the disposal was made as gains arising prior to 23 June 2013 will be charged at the single rate of 18 per cent. Gains arising on or after 23 June 2013 will be charged at the main rate of either 18 or 28 per cent depending on the amount of your client's total taxable income. If you have previously completed a paper return for your client, you might want to consider filing their return online as the total taxable income and charge will be calculated automatically.

Help for customers affected by civil disorder (Opens new window)
If you or your clients have been affected by the recent civil disorder - HMRC's dedicated civil disorder helpline provides comprehensive advice and will deal sympathetically with any problems currently faced by customers.

Toolkits to help reduce errors
HMRC has developed a series of 'toolkits' designed to help minimise common errors when completing clients' returns and provide guidance on areas of error that HMRC frequently see in returns and set out the steps that you can take to reduce those errors.

Other news articles:
1, 2, 3, 4, 5, 6, 7, 8, [9], 10Old News

Tax information for Employers HMRC rates and thresholds
Tax information for Employees HMRC rates and allowances