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With the self-assessment deadline date getting closer, it seems that British taxpayers are becoming more efficient at completing their tax returns.

Findings from the Association of Accounting Technicians (ATT) show that from 2015 to 2016 there was a drop of 20,000 fewer late returns, increasing to another 30,000 fewer from 2016 to 2017.

There was then an even sharper drop of 94,000 from 2017 to 2018.

According to the AAT, if this trend continues, in 2019 there could be a fall to around 600,000 late returns, around 350,000 late returns in 2020, 60,000 in 2021, and conceivably, zero late returns in 2022.

Brian Palmer, AAT Tax Policy Advisor, commented, “It’s excellent to see that the number of people returning their self-assessment tax returns late is going down year on year. There really is little excuse for filing a late tax return. The best advice that I can offer is that those who need to complete a self-assessment return should start working on it sooner rather than later.“By extrapolating the decline in late returns continuing at its current rate, it is possible to imagine a utopian position where the number of late returns could fall to zero within the next few years.

“The number of late returns declining is due to HMRC’s continuing efforts to make the process easier and simpler. In the longer term, the introduction of Making Tax Digital, and the discipline to file quarterly updates, could also help businesses and individuals to get in a mindset of filing on time. Especially as HMRC’s systems will inevitably send reminders to people in advance of when their return is due.”

Still thinking about if you should join Dolan Accountancy?

Give us a call on 01442 795100 or email jaime.thorpe@dolanaccountancy.com

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There is a wide range of support and guidance available on the government website for every stage of the tax return process if you still need help completing your self-assessment.

People need to complete a tax return if they:

  • Earned more than £2,500 from renting out property
  • Or their partner received Child Benefit and either of them had an annual income of more than £50,000
  • Received more than £2,500 in other untaxed income, for example from tips or commission
  • Are self-employed sole traders
  • Are employees claiming expenses in excess of £2,500
  • Have an annual income over £100,000
  • Earned income from abroad that they need to pay tax on

The penalties for late tax returns:

  • An initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time
  • After 3 months, additional daily penalties of £10 per day, up to a maximum of £900
  • After 6 months, a further penalty of 5% of the tax due or £300, whichever is greater
  • After 12 months, another 5% or £300 charge, whichever is greater 

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.

Why Thousands of Contractors Choose Dolan Accountancy

With over 25 years experience in contractor accountancy helping thousands of contractors, freelancers and the self employed, Dolan Accountancy has the specialist skills, reputation and credibility you can trust.

Working closely with our sister company, Contractor Umbrella, it means we can offer one low cost, fixed fee package at £105 + VAT. This gives you the flexibility of using both our Limited Company Accountancy Services and our award winning Umbrella Service, for one inclusive cost.

If you’d like to find out more about how Dolan Accountancy can help you and your business, please give us a call on 01442 795 100 or email sophie.lewis@dolanaccountancy.com or jaime.thorpe@dolanaccountancy.com.

We don’t believe in tiered packages or hidden extra fees, instead we aim to give you everything you need, including:

  • Free Company Formation – This is where it all begins. Once you have decided on an available name, we will form your company free of charge (if using our accountancy services) and it will be ready for you to use in as little as three hours
  • Free use of Contractor Umbrella – With IR35 Legislation changes we understand that sometimes you are required to contract via an umbrella company. We will keep your limited company ticking over, while you work margin free via our sister company, Contractor Umbrella
  • A Dedicated Accountant – Your accountant will be there for any company or personal tax advice that you require. We will never outsource work, even to internal teams
  • Free Access to FreeAgent – We offer all of our clients access to FreeAgent, free of charge
  • Free Business Banking – We have decided to waive our commission so our clients can use Tide free of charge for the first year
  • Unlimited IR35 Status Reviews – We will review all of your contracts for IR35 purposes and provide you with our professional opinion as to its status
  • Free Registered and Director’s Service Office Address – Sometimes you just don’t want your home address on display at Companies House. When you sign up to our accountancy services, we will offer the use of our address as an alternative
  • Your Business and Personal Taxation Needs – This includes Company Accounts, Director’s Personal Tax Return, VAT Returns, Payroll, Corporation Tax and Dividend advice, to name just a few
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