Don’t miss the tax return deadline!

Category: Money
Date: 1/18/2012

Are you sweating at the prospect of the 31 January tax return deadline?

Yes, if you file your tax return online, the time is fast approaching when you must submit your 2010-11 online Self Assessment form to Her Majesty's Revenue and Customs (HMRC). Miss this deadline and you'll be stung by a fine of £100 on top of your tax bill.

Who needs to complete Self Assessment?

• Higher earners (if you earn over £100,000 per year)
• Self-Employed
• Company Directors
• If you receive income above certain thresholds from your savings, investments or property
  

What is the online tax return deadline?

If you want to submit a paper tax return the deadline has already passed. All paper returns should have been submitted by 31 October; but there's still time to avoid that £100 fine if you file an online tax return instead. The online deadline is 31 January 2012.

However, you'll need to get a wriggle on. If you've done a tax return (but never online), you'll need to register. To register you'll need your:

• National Insurance number OR your postcode
• Unique Taxpayer Reference (UTR). This is a number you'll find at the top of letters you receive from HMRC (called "our ref")
  

You need to be quick as once you've registered to complete your tax return online, an activation code will need to be sent out. It can take more than 7 days for this to be posted through – so register as soon as possible.

What if I haven't completed a Self Assessment tax return before?

If you haven't completed a Self Assessment before, you need to register with HM Revenue & Customs. They will then send you out a Unique Taxpayer Reference number that will allow you to complete your tax return online.

However, the deadline for registering for Self Assessment for the 2010-11 tax year (6 April 2010 – 5 April 2011) was 5 October 2011.

If you haven't registered yet you will have to pay a penalty. This penalty would be in addition to other penalties you may be charged if you miss the tax return deadline of 31 January 2012.

The sooner you register for Self Assessment and get your tax return submitted, the smaller the penalties you will have to pay.

What will I need when completing my tax return?

A comprehensive list of the documents you may need to have at hand can be found here.

Note that you will need to keep any relevant documentation until 31 January 2013 in case the tax man needs to check. If you submit your tax return later than 31 January, you need to keep your documents for 15 months from the date you submitted your return.

If you are employed you will need to hold on to your P60 and (if applicable) your P11D which gives details of your employment benefits, such as a company car.

You should keep all records relating to any savings accounts or investments you may have, such as statements, passbooks, tax deduction certificates and dividend vouchers.

If you are a landlord, you should have records of any rents you have received, and any costs and expenses you have incurred (such as from a letting agent or plumber).

When do I actually have to start paying my tax?

The deadline for paying any tax due for the 2009-10 tax year is also 31 January. Depending on the types of income you receive, and the amount of tax due, you may also have to pay some money in advance (or "on account") for the current 2011-12 tax year as well.

Late payment penalties

If you haven't paid your 2010-11 tax after 30 days (from 31 January 2012), you'll be charged an extra 5% on what you owe. If you still haven't paid by 31 July 2012, you'll get hit by a further 5%.

In addition, you'll also be charged interest on the outstanding amount – which includes outstanding penalties.

How to appeal…

You have the right to appeal if you think any penalty charges for missing the tax or tax return deadlines are unfair. You might have a case if:

• Necessary documents were lost or stolen and could not be replaced before the deadline.
• You received your online activation code late from HM Revenue & Customs.
• You suffered from a critical illness that prevented you attending to your tax affairs.
• You had a close family bereavement.
  

This list is not exhaustive and HM Revenue & Customs will treat your case on its own merit. To find out more about appealing the decision see the HMRC website.

What next?

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