Chances are when you miss your tax return deadline there will be accounts penalties and tax penalties to pay.
BUT the sooner you can get it sorted out and filed the less money you will lose in the end.
—> Call us, we can help you sort it out!
This is a difficult situation and even though we would like you to call us and allow us to help, this article is really geared towards the steps you can take now and avoid serious consequences.
Now some actionable steps…
1. The first step is to take some time to get all your paperwork in order.
I know it not be what you want to hear, but in our experience, when clients come to us because they are behind on their tax or facing a tax deadline soon, it is often because their bookkeeping is out of control and paperwork has piled up.
Knowing what you can realistically expect in income and expenses in the coming weeks and months will also create a very clear picture about what tax liabilities you are and are not able to carry.
2. Contact HM Revenue & Customs’ (HMRC) Business Payment Support Service.
Communicate as early as possible with the HMRC, this will enable them to support you and start working with you on solutions. Even if you haven’t missed the deadline yet, but you know you will struggle to pay the full amount or anything at all, get in touch early. The HMRC is there to meet the needs of businesses which have trouble fulfilling their tax obligations; they may even offer additional time to pay depending on your situation.
If you have already received a demand or a letter warning of legal action it is critical to contact the HMRC office that issued it as soon as possible. Even though by the time you receive demands or these letters, your payments are well overdue, further delay will only get you into more trouble.
3. Part with cash before it’s too late.
The next step in resolving the payment issues will heavily depend on your situation. If you can pay the outstanding amount, you may be able to finalise everything by paying some penalties.
If you cannot pay the amount or only part of what is due, there may by payment arrangements open to you.
No matter what agreement you enter into, make sure you follow through, the future of your business depends on it.
As online bookkeepers and online accountants, based in Luton, we have been able to assist clients who were in a difficult tax situation. What we have learned is that it forces a frank assessment of the business which opens the door to new opportunities; we have seen many of our clients prosper after tax time troubles.
It is very stressful to have the tax department knocking on your door, demanding you to pay up – but there is help available for you to ensure it doesn’t happen again.