January celebrations – and a way to avoid a 5% penalty from HMRC in February
Another 31st January, another tax return season done and dusted. The famous paper chain countdown in Gillian and Ian’s office is now stripped bare, we’ve been to see The Kings Speech (how utterly amazing are the actors?) and the long awaited DNA Christmas party has been booked for March!
Unfortunately, along with tax returns comes the payment of the tax. HMRC have a rather nasty penalty system in place which imposes an automatic 5% surcharge on top of the tax due if payment is not received by 28th February.
If you think that you won’t be able to make the full payment of the tax by this date, a way to avoid the surcharge is to contact HMRC as soon as possible to arrange a schedule of repayments on a monthly basis. That way, the penalty charge will be waived.