Penalties That HRMC Could Assess for Late Returns and Tax Mistakes
No one wants to hear that his or her taxes are being investigated by the government. There are several situations that can trigger an investigation, including:
- Living beyond the income on your tax returns
- Filing late returns
- Income from property
- An offshore bank account
- Income has fallen or costs have increased
- A tip to HRMC
If you are being investigated, you need to hire someone who can do a certified tax investigation in Sutton Coldfield to help you avoid penalties.
Penalties for Filing Late Returns
If you file a late tax return, there are several ways that the HRMC may penalise you. Late penalties could be as little as £10 per day for a maximum of 90 days or as high as £300 or 5% of what you owe, whichever is higher. There is also a £100 fine for filing late returns.
Filing Incorrect Returns
Everyone makes mistakes but if you do so on your tax return, then you could face penalties for them. People who were careless about filing their taxes out could face penalties between 0% to 30% of the taxes they owe.
People who deliberately underestimated their taxes could be penalised 20% to 70% of what they owe. If they tried to conceal the fact, then they could be assessed up to 100% of what they owe, doubling their tax payment.
When you hire investigative tax accountants, they will prepare the necessary documents for the investigation and deal with HRMC for you.