The Dangerous Side of Self-Assessment
Self-employed? Running your own small business? Then you're very likely to be sorting out your own tax returns which can be a messy job at times and can be a pitfall if you fail to pay your due on time.
Luckily, some individuals have their tax issues sorted by a tax accountant such as Clearsky, but the process of Self-Assessment has been reduced to an online form these days for those that have to do it upon their own accord.
Any delay on filling out this form though and the penalties can be substantial for your earnings, whether you were due to pay any tax or not.
As of May 1 2012 the penalty for a one-day late tax return is a straight up £100 fine and the following shows what happens if the problem develops:
- One day late: An automatic £100 fine and is applied whether any tax is due or not or even if the tax has been paid.
- Three months late: On top of the initial penalty, as soon as the three month bracket comes in a £10 daily fine enters the equation, with a maximum 90-day period and so a potential penalty of a further £900.
- Six months late: Whichever is the higher figure, £300 or 5% of the tax due, will be added as a further fine on top of anything previously.
- Twelve months late: Adding to all the other penalties, the six month fine is repeated - in some cases 100% of the tax due is taken as a fine instead.
There are many companies that can help make sure this never happens and it can be a real godsend knowing your returns are being submitted well on time for the end of the financial year.
It could help further to make sure someone does an IR35 review as well to make sure you're not losing money elsewhere and you could actually save well into the £1000s.
In fact, heaping all of your financial needs onto one company can allow you to concentrate on your own job and there are several services that can help keep all this information in one place, whilst an external accountant takes care of the dirty work of taxation and administrative tasks.
Shares Compared utilises data made publicly available via Yahoo Finance.
Whilst Shares Compared does its darndest to maintain the quality of the information displayed on site, we can't be held responsible for any financial loss due to incorrect information contained here.
All information at Shares Compared is provided free of charge, and you use it at your own risk.
Before investmenting your hard-earned please check financial data from a secondary source.
The Shares Compared Website
The owner of Shares ComparedE is not a citizen of the United Kingdom nor is he based in the United Kingdom and Shares Compared is not hosted in the United Kingdom.
The owner of Shares Compared has never received any form of compensation for providing investment recommendations and has never in the past been employed in any capacity where he has provided investment recommendations.
Shares Compared does not make investment recommendations and no information displayed on its pages should be considered as investment advice. Nothing on Shares Compared should be interpreted as a recommendation or solicitation to buy, sell or trade any equities, indices, securities or investments.
Nothing on Shares Compared should be considered financial advice.
Investment Risk Warning
Trading and spread trading shares is never without risk.
If you are going to trade in shares you need to do a ton of your own homework. Never trade on a single recommendation. Never invest more than you can afford to lose and don't put all your eggs in one basket.
Remember, past performance of a share is no guide to its performance in the future.
If you are ever unsure about any investment or financial decision, you should always seek expert independent advice.
It may never happen...
Contact DOW follows FTSE
If you'd like to share something with us or there's something you'd like to comment on, please drop us an email to paul [at] investortrader.co.uk.
And if you're looking for some quality investment-related web advertising, we do that too and we'd love nothing more than to help you out.
Advertise on Shares Compared
Be it a little text, a button, banner or widget, if you want to promote your website on Shares Compared, lets talk.
We've been in the business building quality web sites for over ten years and we currently promote the wares of over 100 satisfied clients across our range of more than 20 sites - including Investor Trader, AIM Soirée and DOW follows FTSE.
We know what our partners want and we aim to deliver that and more.
So let us know your requirements in an email to paul [at] investortrader.co.uk and we'll get back to you super quick with a promotion plan to match your budget, whatever it may be.
You are at the website of Shares Compared. The owner of this site can be reached at paul [at] investortrader.co.uk.
Shares Compared does not collect individual data on its users. Shares Compared collects aggregate data for statistical purposes using Google Analytics and Statcounter.
For any questions regarding this site please contact the owner at paul [at] investortrader.co.uk.