Self Assessment Deadline Nearing - don't be late!
The Self Assessment Tax Return filing deadline is nearing so don’t be late. Last year H M Revenue & Customs (HMRC) brought forward the filing deadline for submitting paper Returns to 31st October in order to encourage businesses and individual taxpayers to file electronically.
Generally, if you are sent a notice to complete a Tax Return and wish to submit it in paper format you must return it completed before the later of 31 October following the end of the tax year and three months following the date of issue of the notice. Failure to do so will result in a £100 penalty regardless of the tax due. (£100 per partner if the Return relates to a partnership)
For paper returns submitted by this date, HMRC will:
- calculate your tax for you (though you or your accountant can calculate it for yourself if you want)
- tell you what to pay by the following 31 January
- collect tax through your tax code (if possible) where you owe less than £2,000.
If you choose to submit your Return electronically either via HMRC’s website or an electronic service provided by your accountant you still have until 31 January 2010 to be able to submit your Return. There are many advantages of electronic submission, the main ones being:
- Tax Returns are processed almost immediately and an acknowledgement of successful submission is provided.
- Your liability is calculated automatically and any refund due is issued by the system direct to your bank account. Typically this occurs within 10 working days and saves banking and postage costs/time. Manual processing can take weeks, sometimes months.
- PAYE coding notices are updated and re-issued without delay (if appropriate)
- The lack of ‘human’ intervention prevents processing errors and re-enforces the process now, check later strategy intended for Self-Assessment
There are a few situations where online Tax Returns can't be made and you are still able to submit in paper format. In these cases the submission deadline is still 31 January.
The 31st October will soon roll round, so you either need to move to electronic filing which will allow you a little extra time or start filling in your form now.
Disclaimer: This article is for general guidance only. All taxation planning should only be undertaken after appropriate professional advice. George Hay Chartered Accountants are registered to carry on audit work and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales.
Biggleswade Chronicle - 2 October 2009