9 January 2015
Salon owners are being reminded they only have until the end of January to complete their online tax return for 2013/14 or risk a minimum £100 penalty.
Self-employed stylists will also need to complete an online tax return by 31 January, the Federation has warned.
With HM Revenue & Customs’ online tax return filing systems likely to be under severe pressure in the run-up to the end of January, the NHBF is strongly advising it makes sense to get your return done and sent off sooner rather than later.
HMRC has toughened up its penalty regime for late returns in recent years, and failing to get your return in by 31 January will mean an automatic penalty of £100.
This rises sharply if you have still not got it in three months after the deadline.
At that point you could incur a penalty of £10 for each day your return continues to be late, up to a maximum of £900 (or 90 days).
If HMRC has still not received your return six months after the deadline you will incur a further fine of either £300 or 5% of your total tax bill, whichever is the larger amount.
After 12 months you again incur a penalty of either £300 or 5% of the total tax due. In very serious cases you may be asked to pay up to 100% of the tax due instead, as well as any tax you owe, so potentially doubling your payment.
With January normally a quieter month for many salons, there is no excuse not to get your return in on time,” said NHBF president Paul Curry.
“The penalties for missing the deadline are expensive so, even though it can feel like a chore, you shouldn’t put it off,” he added.
The government has advice on how to submit an online tax return at: gov.uk/how-to-send-self-assessment-online/overview
The consumer organisation Which? also has advice at: which.co.uk/money/tax/guides/tax-returns/