Tax specialist urges firms to heed deadline for returns

SMALL businesses in the Observer patch are being warned by a local tax specialist to complete their self-assessment tax returns to avoid hefty fines.

Companies must submit their returns by January 31 or face a fixed penalty of £100 – even if they have no tax to pay or have paid the tax they owe.

If they are three months late, an additional £10-a-day penalty will apply up to a maximum of £900.

After six months, a further £300, or five per cent of the tax due, will be imposed, whichever is the higher figure.

After 12 months, a further £300 or five per cent penalty applies and, in very serious cases, this could even be 100 per cent of the tax.

David Dixon, who launched TaxAssist Accountants in Hockerill Street in 2003, said: “Missing the deadline means you needlessly lose a significant amount of your hard-earned income to the taxman.

“We’re urging local businesses to tackle the returns now and enjoy peace of mind.”