The beginning of February marks the end of the 31st January deadline to submit your self-assessment tax return for the year ended 5 April 2019. As a result of hundreds failing to meet this deadline however, some landlords face a £100 fine.
Over 10 million tax payers were able to submit their self-assessment returns before the deadline. Typically, these are self-employed individuals, run their own business, or have untaxed income or capital gains, such as those found in buy-to-let properties, a trust or investment portfolio.
But the number of returns that failed to meet the deadline is believed to have racked up into the hundreds of thousands marks, with many of this figure suspected to be landlords. Many of these individuals are now at risk of paying a penalty.
Whether you have just begun your journey as a buy-to-let landlord or are an experienced property investor with a sturdy portfolio, you were required to ensure you had filed your 2018/2019 self-assessment tax returns before the January 31st deadline.
Unless you have a reasonable excuse or had only registered to complete a return in the last three months, HMRC will soon be issuing the £100 late filing penalty on top of any owed tax.
For landlords who may not be able to pay the tax however, there are ways around this.
Time to pay arrangements are a system set up by HMRC; whereby if they are to accept the circumstances of an individual, you will be expected to provide an in-depth breakdown of incoming, outgoings and assets. Providing these meet their criteria, HMRC will then arrange a payment schedule to pay off the tax owing over the course of a few months.
Other than having interest accrue on the outstanding tax, no further penalties would be invoked.
In order for the time to pay request to be considered however, a tax return must be submitted so that the tax can firstly be calculated.
It is important in advance to undertake the actions needed to ensure that the self-assessment returns are submitted prior to the deadline in the first place. By taking on a hassle free, full property management package with Abode, you’ll be kept up to date with all the necessary deadlines you may need to make; ensuring you remain compliant and not having to spend money unnecessarily.
For more information on how we can help with this, give us a call on 0161 883 2525.