One might be tempted to think that a £100 fine for not submitting the tax returns on time is not much. First of all, it is a small amount to pay and secondly, if your total due tax is less than the fine, you don't need to pay the fine at all. However, there are more hidden troubles which come up with this attitude than it appears at the first sight.
First of all, HMRC has increased the time frame in which they can initiate an enquiry so you need to wait longer before you can be sure that the authorities have accepted the figures you have submitted. HMRC generally has 12 months from the date of the tax return submission to start an enquiry against you. If the tax is submitted late, HMRC will add another financial quarter to this duration, making it 15 months during which they can initiate an investigation.
HMRC might launch an investigation against you simply because you have submitted the tax late. You will also see that any insurance which you might have purchased to cover the legal and financial expenses for handling a HMRC audit is invalid simply because you have paid the tax late. When you submit your tax return in London late, you are bringing yourself to the attention of the HMRC, thus increasing the risks of an investigation, making the insurer withdraw the protection. If you have purchased such a policy, you better check the small prints carefully.
First of all, HMRC has increased the time frame in which they can initiate an enquiry so you need to wait longer before you can be sure that the authorities have accepted the figures you have submitted. HMRC generally has 12 months from the date of the tax return submission to start an enquiry against you. If the tax is submitted late, HMRC will add another financial quarter to this duration, making it 15 months during which they can initiate an investigation.
HMRC might launch an investigation against you simply because you have submitted the tax late. You will also see that any insurance which you might have purchased to cover the legal and financial expenses for handling a HMRC audit is invalid simply because you have paid the tax late. When you submit your tax return in London late, you are bringing yourself to the attention of the HMRC, thus increasing the risks of an investigation, making the insurer withdraw the protection. If you have purchased such a policy, you better check the small prints carefully.