Good news for late filers as it was announced today that the Self-Assessment filing deadline has been extended to the 2nd February 2012. This was due to planned strike action by some HM Revenue & Customs (HMRC) staff on 31 January 2012.

HMRC have announced that from 31 January 2012, they would be sending letters to taxpayers who are suspected of fraud and inviting them to make a full disclosure. They will give them the opportunity to take advantage of the Civil Investigation of Fraud procedures by entering into a contract with HMRC to disclose the fraud within 60 days. In return for full disclosure, HMRC will not undertake a criminal investigation with a view to prosecution.

The taxman has warned people to watch out for ‘e’ conmen posing as Revenue officials, emails are being sent to people from the fake address, HMRC@hmrc.online.uk, and marked ‘Copyright 2011, HM Revenue Customs UK.’

Recipients are told a tax refund is waiting for them and are instructed to visit what appears to be an official website. Anyone who does risks revealing data and losing their money to criminals.

An HMRC spokesman said “People should not check it out – they should just delete the email as soon as they see it.”

More than a 1,000 taxpayers submitted their self-assessment returns on Christmas Day, HM Revenue & Customs figures have revealed.

The figures also show that 102 people saw in the new year at their computer completing their tax returns. In total, 11,648 filed on New Year’s Eve, while 8,935 people submitted on New Year’s Day.

Just a reminder to all those who have not yet filed their tax returns the deadline is the 31st January 2012 so just 26 days to go!

FINES, PENALTIES AND EVEN MORE FINES AND PENALTIES

In the past as long as you paid your tax liabilities on time and cleared any self-assessment tax due by 31 January, no late filing penalties were due. Even if you failed to pay your tax on time, late filing penalties were capped at £100 or nil if you were due a tax refund.

Things are changing! The 2010-11 tax returns have to be filed by 31 October 2011 if you are filing a paper return, or 31 January 2012 if you are filing electronically. If you fail to meet these deadlines you face the following penalty regime, even if your tax payments are up-to-date.

• One day late an initial penalty of £100.
• Three months late a daily penalty of £10 per day up to a maximum of £900.
• Six months late an additional £300 or 5% of any tax outstanding, whichever is the higher amount.
• One year late a further £300 or 5% of any tax outstanding, whichever is the higher
  amount.

As you can see the minimum penalty for filing 6 months late is £1,300 even if all your tax due is paid on time or you are due a tax repayment.

Please help us to file your tax return on time by sending in your information as soon as possible.

New national minimum wage rates

The latest minimum wage increases will apply from 1 October 2011:

• £6.08 for workers aged 21 and over (up from £5.93)
• £4.98 for workers aged 18-20 years old (up from £4.92)
• £3.68 for workers aged 16-17 years old (up from £3.64)

The minimum wage for apprentices rises by 10 pence per hour to £2.60. This applies to all apprentices under 19, or those who are aged 19 or over and in the first year of their apprenticeship.

What this means for you

In order to be compliant with the new rates you will need to review your employee rates of pay to ensure that they comply with these new changes.

Apple co-founder and former CEO Steve Jobs has died aged 56 after a long battle with cancer.

HM Revenue & Customs recouped just £219,180 from enquiring into the IR35 status of workers between 6 April 2010 to 5 April 2011. The previous year saw a yield of  £155,502, according to information on the taxman’s website.

These figures confirm that the tax yield from IR35 is minimal and an unnecessary stress on genuine businesses. As detailed in the Budget this year, its administration is being reviewed. We follow with interest.