Trustees are taxed under the Self Assessment regime in the same way that individuals are. Tax Returns for the year ended 5 April 2013 should be submitted by 31 January 2014 if they are submitted online, however if a paper Return is being filed the deadline is 31 October 2013. If Returns are submitted after these dates the Trustees will be liable to a fixed £100 penalty, even if there is no tax due for 2012/2013. Further daily penalties will be incurred if the Return is not submitted 3 months after the relevant filing deadline. Penalties may be withdrawn if the Trustees have a reasonable excuse for the late filing of their Tax Return.
If Trustees have a liability for Income Tax or Capital Gains for 2012/2013 and they have not received a 2013 Tax Return they must notify HM Revenue & Customs by 5 October 2013.
If you are a Trustee of a Settlement and are unsure if you are required to take any action by October 2013 Arnold Hill & Co LLP’s Trust department can assist in establishing you obligations and preparing any necessary Tax Returns or other submissions to HM Revenue & Customs. If you miss the 31 October deadline there is still time to submit a return online but as the necessary information may not be readily at hand it is advisable to start dealing with the Tax Return as soon as you can.
If you would like any assistance please contact Lucy Duncan.