Salon owners! don't forget the 31 january tax deadline

The National Hairdressers' Federation is urging salon owners to complete their online tax return before the 31 January tax deadline, or risk a minimum £100 penalty. Self-employed stylists will also need to complete an online tax return before the deadline, the Federation has warned. HMRC has toughened up its penalty regime for late returns in recent years and failing to get your return in by 31 January will mean an automatic penalty of £100. This amount rises sharply if you have still not got it in three months after the deadline; you could incur a penalty of £10 for each day your return continues to be late, up to a maximum of £900 (or 90 days). If HMRC has still not received your return six months after the deadline you will incur a further fine of either £300 or 5% of your total tax bill, whichever is the larger amount. After 12 months you again incur a penalty of either £300 or 5% of the total tax due. In very serious cases you may be asked to pay up to 100% of the tax due instead, as well as any tax you owe, so potentially doubling your payment. NHF president Paul Curry says: "With January normally a quieter month for many salons, there is no excuse not to get your return in on time. "The penalties for missing the deadline are expensive so, even though it can feel like a chore, you shouldn’t put it off." The government has advice on how to submit an online tax return here and the consumer organisation Which? also has advice here.