Getting inadequate advice when filing your business accounts or tax return could be incredibly costly. Caroline Wheeler, a Partner at our Pembroke office, explains the importance of receiving the correct advice and of acting in a timely manner.
Time is of the essence, stay ahead of the curve
Penalties can start at £150 and escalate into the thousands for a late filing and mistakes could also have a significant financial impact on your business.
When it comes to filing either your accounts or tax return it is crucial that you speak to a qualified and professionally recognised accountant from the start, this can help you to ensure that nothing is left to chance and can eliminate the risk of receiving any penalties.
Here at Bevan Buckland our award-winning teams are highly experienced in supporting businesses across south Wales in offering specialist tax services and strategic advice to support their success.
Caroline advises: “We recognise that when it comes to filing your tax return and accounts this is a complex area and as such, we always advise people to ensure they are selecting someone qualified and capable, and who is a member of a professional body.
“It really is better to get the right advice rather than paying out extra in penalties. Filing late, making a mistake, or even claiming when you shouldn’t claim can be hugely costly, so we’d urge you to get professional advice to avoid any unnecessary stress.”
Those looking to navigate tax returns and account filings should be aware of the potential penalties they could face if they file late, or the filing is inaccurate.
For businesses filing Private Limited Company accounts penalties for late filings are:
• More than one month late – £150
• Over one month but less than three months – £375
• Over three months but less than six months – £750
• Over six months late – £1,500
Caroline advises that if the same company files late the next year the penalties double (£300, £750, £1,500 & £3,000).
Penalties are also strict when it comes to individuals or partnerships filing their tax return with HMRC.
Penalties for a partnership or individual’s late tax return are:
• A day late and less than three months – £100 per return
• Over three months – £10 per day for up to 90 days
For companies filing late the penalties are:
• First three months – £100 then a further £100 if it exceeds three months
• Over six months – 10% of the estimated unpaid tax
Incorrect filings could also be significantly costly.
If there is a mistake in the filing any tax due will be payable plus interest, and if HMRC believe the mistake to be anything other than ‘innocent’ a penalty based on the tax amount is charged which could range from 10% to 100% of the tax.
Get in touch
If you require more specific advice relating to the above or any other financial matter, please get in touch with our team by calling 01646 682383 or by visiting www.bevanbuckland.co.uk