The tax return deadline of 31st January 2010 is just around the corner. Failure to meet this could result in hefty penalties so make sure it’s at the top of your priority list. Here are a few tips to follow so you don’t get caught out by the tax man.
Submitting your tax return online - the deadline for paper returns was 31st October 2009, you must now send your tax return online which needs to reach HM Revenue & Customs (HMRC) by midnight on 31st January. By now you should have registered to use the HRMC’s online services and received your activation code. Given that this is done, you’ve now not got a week to file or otherwise you could face a £100 penalty, on top of any tax due.
It’s also worth noting that if you’re new to the online world there’s a very small number of cases where HMRC will still allow you to send your tax return on paper - read the section 'Exceptions - where you can't file online' rules surrounding this.
Pay any outstanding tax - as well as submitting online, the full and final tax payment will need to accompany the tax return. If you have been within self-assessment for a number of years, you will now be required to pay the final amount on 31st January 2010, together with the payment on account for the subsequent tax year 2009-10.
Late returns - there will be penalties for late payments. Penalties will apply from the 28th February and will cost you 5% of the tax that is unpaid plus interest.
And, if you can’t pay – worst case scenario and you can’t pay, then help is at hand – the HMRC have set up the business payment support service which details what to do.
No one likes tax returns; we all know they’re tedious and time consuming and quite the administrative headache. But at the end of the day they have to be done. With this in mind, it’s worth sitting down to do this and kicking off the new year with a clean tax conscience.
For answers to all your queries and questions log onto the HMRC website which provides full instructions on the process.
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