Property Investors Must Act to Avoid Tax Penalty

Property investors need to act now if they missed their self-assessment tax return payment in order to avoid further penalties.

Accounting practice Blick Rothenberg have urged landlords and property investors to file their tax returns. Unless they are able to present a reasonable excuse they will be subject to a fine of £100 for having missed the deadline of January 31st. A ‘reasonable excuse’ can be a variety of things including the bereavement of a close relative, hospitalisation, a fire or flood or simply issues with the online HMRC service.

Assistant Manager at Blick Rothenberg, Paul Haywood-Schiefer, said: ‘What wouldn’t be classed as a reasonable excuse is if you forgot, you were relying on someone else to do it, you didn’t get a reminder from HMRC or you thought the deadline was another date. The same principle applies if you try to blame the January blues, the tube strikes or even Brexit. Penalties will get harsher and interest will continue to accrue if no payment is made and no payment plan has been put in place.’

Any underpaid tax will be subject to HMRC’s rate of interest which is currently 2.75 per cent until payment. For any outstanding liability on the 2nd March 2017 a 5 per cent surcharge will apply, and then again on a 6 and 12-month period after the payment was due.

Haywood-Schiefer explained: ‘As well as the penalties for late payment, if the return is still not submitted three months from the due date, then £10 daily penalties will accrue. Further penalties arise on six and 12 months late, so it is important for people to bring their tax affairs up to date as soon as possible so as not to incur unnecessary penalties, which can be as much as 100% of the tax due.’

Password Reset
Please enter your e-mail address. You will receive a new password via e-mail.