Tax Returns 2007/08

Friday 11 April 2008

6 April 2008 heralds not only the start of a new tax year but also the first significant change to the tax return process in over 10 years. Electronic filing is up and running and the deadline for all paper returns has been moved forward to 31 October 2008 but we continue to be committed to offering you a great, value-adding tax compliance service.

What needs to be done

Collecting and collating the annual tax return information can be a very time consuming and costly exercise. This year, it's more important than ever that you submit your tax return information as early as possible.

Click here to download a pdf of the full checklist of information needed to submit your tax return.

What is available now...

• Bank and building society interest
• Dividends from UK and foreign companies
• Dividends or interest from Unit Trusts
• Other interest from UK or overseas
• Annual tax packs in respect of investment portfolios
• Details of state benefits received incl. state pension
• Property income and expenses
• Qualifying loan interest
• Pension premiums paid
• Gift Aid and charitable covenant payments.

Click here to receive email updates about your tax return process

Beyond compliance

Grant Thornton offers a total tax management service.  We provide access to a wide range of bespoke planning opportunities and can advise on all areas of taxation. From Expatriate Tax Planning  to Wealth Management, we can offer much more than tax compliance.

Click here for more details. 

The new filing deadlines

From 6 April 2008 HM Revenue and Customs (HMRC) have introduced different filing deadlines for Self Assessment tax returns depending on whether the return is submitted on paper or electronically.  Whilst electronically submitted returns will retain a filing deadline of 31 January 2009, the deadline for all paper returns has been moved forward to 31 October 2008.  This move comes as part of HMRC's efforts to automate much of the self assessment tax return compliance process.

As you will be aware, for the past 12 months, we have electronically submitted to HMRC as many returns as possible. On the whole, this process has been encouraging.  However, for a wide variety of technical reasons many returns have been rejected by HMRC's gateway.  As a result, the paper copy of the return has also had to be submitted.  From 1 November 2008, 2007/08 tax returns can only be sent electronically, so any rejected by the online system must be altered, re-approved and re-submitted on-line.

We are continuing to work closely with HMRC to improve their online filing system and will continue to electronically file as many returns as possible.  However, to ensure as little disruption as possible, we would encourage you to provide us with your tax return information well in advance of 31 October 2008.  Please ensure that all your tax return information is sent to us as soon as possible after 5 April 2008 and by 30 September 2008 at the very latest.

Penalties

Under the self assessment regime, emphasis is placed on taxpayers complying with the tax legislation and stringent penalties are applied for non-compliance. 

Electronically submitted returns will retain a filing deadline of 31 January 2009, the deadline for all paper returns has been moved forward to 31 October 2008.  If there is an underpayment of less than £2,000, for the year to 5 April 2008, which is to be collected by means of an adjustment to your PAYE code number (where applicable), the return must be submitted by 31 October 2008, although an extension to 31 December 2008 may be allowed where the return is filed electronically.

Those returns submitted after 31 January 2009 will be subject to an automatic penalty of £100 by HMRC, with further penalties being charged for continued failure to submit.  It is therefore important that we complete and submit your return as soon as possible after 5 April 2008.