What happens if you don't fill out your tax return?

Well, according to HMRC, you won't get "inner peace".

Where did the time go? 31st January is less than a week away.

With online submissions nowadays isn’t everything much smoother and quicker and all done well before time? If this is your first online return and you have sat on your paperwork so that you are only now getting around to it you will probably already be too late if you haven’t at least registered online. In this world of being online, I’m afraid HMRC still use the good old fashioned postal system to send you the activation code you will need to submit your online return. This can take up to seven days to reach you — perhaps even longer in the snow!

So I’m sorry to be the bearer of bad news, but if you are late for this very important date you will be hit with an automatic £100 fine, even if you have no tax to pay or are paying your tax on time. 

If you are more than three months late in filing your return, there will be a daily fine of £10 up until the 90-day period, amounting to £900. HMRC has also now imposed an additional £300 penalty or 5 per cent of the total tax payable (whichever is higher) for those self assessment returns that are six months late. The same applies again for being 12 months late. In serious cases, the penalty can be 100 per cent of the tax payable.

In order to avoid late filing penalties it is advisable to submit an estimated return (if you have your activation code that is). You will need to provide an explanation of why certain figures are estimates and you will, of course, need to remember to send in the actual figures as soon as you have received these.

HMRC’s 2013 advertising campaign encourages people to "do it today, pay what you owe and take a load off your mind", so they can experience "inner peace".
   
Remember, even if you have professionals dealing with your affairs, preparing and submitting your returns they are limited by the amount of information you have provided, within a timescale they no doubt advised you of last April. So if you are only now discharging your duty by emailing everything to your adviser remember you’ll still be personally held responsible if they don’t meet the deadline.

It’s not just filing your return that counts. Whatever you do, don’t forget that payment of tax is also due on 31 January. It is important to make payment, even if no payslip is received. If tax is not paid, interest will run immediately. If tax is still outstanding after 28 February you will be subject to a 5 per cent surcharge. And all this is on top of any late filing penalties.

Anybody with any difficulties paying their taxes must inform HMRC ahead of time to take advantage of the Business Payment Support Service, an initiative of HMRC to help business and individuals with their tax payments.

When it comes to tax payments and returns, punctuality definitely pays off.

Fiona Poole is a senior associate at private client law firm Maurice Turnor Gardner LLP

This article first appeared on Spear's.

31st January is less than a week away. Photograph: Getty Images

Fiona Poole is a senior associate at private client law firm Maurice Turnor Gardner LLP

Photo: Getty Images
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Why are boundary changes bad for Labour?

New boundaries, a smaller House of Commons and the shift to individual electoral registration all tilt the electoral battlefield further towards the Conservatives. Why?

The government has confirmed it will push ahead with plans to reduce the House of Commons to 600 seats from 650.  Why is that such bad news for the Labour Party? 

The damage is twofold. The switch to individual electoral registration will hurt Labour more than its rivals. . Constituency boundaries in Britain are drawn on registered electors, not by population - the average seat has around 70,000 voters but a population of 90,000, although there are significant variations within that. On the whole, at present, Labour MPs tend to have seats with fewer voters than their Conservative counterparts. These changes were halted by the Liberal Democrats in the coalition years but are now back on course.

The new, 600-member constituencies will all but eliminate those variations on mainland Britain, although the Isle of Wight, and the Scottish island constituencies will remain special cases. The net effect will be to reduce the number of Labour seats - and to make the remaining seats more marginal. (Of the 50 seats that would have been eradicated had the 2013 review taken place, 35 were held by Labour, including deputy leader Tom Watson's seat of West Bromwich East.)

Why will Labour seats become more marginal? For the most part, as seats expand, they will take on increasing numbers of suburban and rural voters, who tend to vote Conservative. The city of Leicester is a good example: currently the city sends three Labour MPs to Westminster, each with large majorities. Under boundary changes, all three could become more marginal as they take on more wards from the surrounding county. Liz Kendall's Leicester West seat is likely to have a particularly large influx of Tory voters, turning the seat - a Labour stronghold since 1945 - into a marginal. 

The pattern is fairly consistent throughout the United Kingdom - Labour safe seats either vanishing or becoming marginal or even Tory seats. On Merseyside, three seats - Frank Field's Birkenhead, a Labour seat since 1950, and two marginal Labour held seats, Wirral South and Wirral West - will become two: a safe Labour seat, and a safe Conservative seat on the Wirral. Lillian Greenwood, the Shadow Transport Secretary, would see her Nottingham seat take more of the Nottinghamshire countryside, becoming a Conservative-held marginal. 

The traffic - at least in the 2013 review - was not entirely one-way. Jane Ellison, the Tory MP for Battersea, would find herself fighting a seat with a notional Labour majority of just under 3,000, as opposed to her current majority of close to 8,000. 

But the net effect of the boundary review and the shrinking of the size of the House of Commons would be to the advantage of the Conservatives. If the 2015 election had been held using the 2013 boundaries, the Tories would have a majority of 22 – and Labour would have just 216 seats against 232 now.

It may be, however, that Labour dodges a bullet – because while the boundary changes would have given the Conservatives a bigger majority, they would have significantly fewer MPs – down to 311 from 330, a loss of 19 members of Parliament. Although the whips are attempting to steady the nerves of backbenchers about the potential loss of their seats, that the number of Conservative MPs who face involuntary retirement due to boundary changes is bigger than the party’s parliamentary majority may force a U-Turn.

That said, Labour’s relatively weak electoral showing may calm jittery Tory MPs. Two months into Ed Miliband’s leadership, Labour averaged 39 per cent in the polls. They got 31 per cent of the vote in 2015. Two months into Tony Blair’s leadership, Labour were on 53 per cent of the vote. They got 43 per cent of the vote. A month and a half into Jeremy Corbyn’s leadership, Labour is on 31 per cent of the vote.  A Blair-style drop of ten points would see the Tories net 388 seats under the new boundaries, with Labour on 131. A smaller Miliband-style drop would give the Conservatives 364, and leave Labour with 153 MPs.  

On Labour’s current trajectory, Tory MPs who lose out due to boundary changes may feel comfortable in their chances of picking up a seat elsewhere. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog. He usually writes about politics.