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Tax Tables

2015-16 tax tables

Personal allowances

£10,600 personal allowances

£10,660 personal allowances for people born before 6th April 1938 

Personal allowances are educe if you earn more than £100,000. For every £2 earned over £100,000 will see a decrease of £1 on the personal allowances.

Tax reducers 

10% – £8,355 Married couples allowance if one person was born before 5th April 1935. Minimum is £3,220)

20% – £1,060 Marriage Allowances

Key dates

30th October 2016 – Paper filing deadline

31st January 2016 – Electronic paper filing

Fines & Penalties

Filing of self assessment

HMRC will issue penalties if the self assessment has not been filed on time

  • Immediate – £100 last submission of self assessment i.e. after 31st January 2017
  • => 3 months late – Above plus £10 per day penalties  (max £1,000)
  • => 6 months late – Above plus 5% of the tax liability or £300 whichever is greatest
  • => 12 months late – Above plus an additional 5% of the tax liability or £300 whichever is greatest

The above only relates to the submission and not penalties / interest charges for late payments of your tax liability.

You can change your self assessment within 9 months of the submission date to HMRC

Late payments – Penalties & Fines

Fines

If you have a tax liability of £1,000 or more then you will be expected to make payments on account for the following tax year based on the reported tax liability. You would have to pay the payments on accounts in two stages

  • 31st January (when you normally pay the previous years tax)
  • 31st July

HMRC will issue penalties if these payments are late as follows:

  • => 30 days late of deadline – 5% of the tax liability
  • => 6 months late after deadline – 10% of the tax liability
  • => 12 months late after deadline – 15% of the tax liability

Interest

HMRC will also charge interest on late payments of tax. They will normally charge 3% above bank of interest rate and will be calculated from the two above key dates being 31st January and 31st July to the dates that the date that the tax is eventually paid.

HMRC Investigation

HMRC may make an enquiry into your tax affairs when you have submitted the self assessment within one calendar year

Incorrect tax liabilities

HMRC will charge penalties and interest for any incorrect tax return that you provide. If you stated that you had a tax liability of £5,000 but after a HMRC investigating you have a tax liability of £6,000 then you will be given the below fines on the £1,000.

 Maximum Penalty  Minimum penalty Not prompted by HMRC   Minimum penalty prompted by HMRC
 Carless action  30%  0%  15%
 Deliberate but not concealed 70% 20%  35%
Deliberate and concealed 100%  30%  50%

So, if you owe £1,000 in tax because you deliberately concealed the additional tax liability then you would have to pay the £1,000 tax liability plus the £1,000 fine. This means that would have to pay HMRC £2,000.

Paper work & Record keeping – Fines

You must keep your paperwork for:

  • 5 years from the 31st January filing deadline for property, self employed, partnerships
  • 1 year from the 31st January filing deadline for anyone else

Failing to keep adequate paperwork may result in a maximum fine of £3,000.

Penalties will apply on a ‘flat rate’ basis as follows:

  • £500 – Initial failure to keep or preserve statutory records
  • £250 – Initial failure in the first tax year of business trading

These penalties will be increased for subsequent failures by adding £500 to the ‘Initial failure to keep or preserve statutory records’ rate for each occasion a failure occurs, to a maximum of £3,000. So a second failure will attract a penalty of £1,000 no matter if the initial failure was in the first year of business trading.

  • £3,000  – Deliberate destruction of all statutory records
  • £1,500 – Deliberate destruction of some statutory records


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Telephone: 0115 939 4606
Email: simon@optimiseaccountants.co.uk