According to a recent questionnaire carried out by Kashflow of 500 small firms, ten percent of respondents admitted not meeting the self assessment online filing deadline of 31st January. As the UK has about 4.5 million small companies, 450,000 of those will potentially fail to meet the filing deadline at the close of January 2012. As all taxpayers are given an instant £100 penalty for failing to meet the deadline, the likely cost to small businesses will be £45 million.
The CEO and founder of Kashflow, Duane Jackson admits that he is amazed at the lack of care displayed by businesses that miss the filing deadline, especially in today’s economic climate. He added:
“As a small business owner myself, I understand the plethora of pressures faced by businesses today, yet adding another financial burden by missing a deadline will only worsen the strain in the long run.”
Jackson further adds that a number of small business owners want to concentrate on running the business, rather than dealing with administration. Unfortunately, this attitude often results in missed deadlines and penalties. He advises small businesses to simplify processes where it is practical to do so, especially when it comes to meeting HMRC deadlines.
A number of small businesses use online accounting to simplify administration and minimise costs. This practice ensures that routine tasks are dealt with throughout the year, avoiding a last minute panic which can result in costly errors and unnecessary penalties issued by HMRC.
