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Online self assessment tax returns deadline fast approaching

The online deadline for more than nine million people who have to complete a self assessment tax return is fast approaching. The leading business and financial adviser, Grant Thornton is advising taxpayers to ensure they file their tax returns on time or risk a £100 late penalty charge.

Individuals who are liable to submit an online self assessment tax return for 2008/09 by the 31 January include anyone who is self-employed, who receives income from more than one source or who is a higher-rate taxpayer.  The deadline for filing a paper tax return was 31 October 2009 and those who send a paper tax return may now incur a £100 penalty.

Francesca Lagerberg, Head of Tax at Grant Thornton, says "A record number of taxpayers are expected to file online this year, an increase of 5.8 million compared to last year.  Those who plan to file online should ensure they have prepared the relevant documentation and have not left it too late to avoid being caught up in the last minute rush. HM Revenue & Customs'(HMRC) servers have been known to crash due to the increased number of people who will be filing online. 

"The deadline this year falls on a Sunday.  This does not mean that HMRC will be less strict in handing out fines.  Last year an estimated one million people had to pay the taxman £100 for a late submission.  In the current economic climate it would be a shame to incur an easily avoidable £100 penalty," Lagerberg continued. 

Currently, £100 is the maximum penalty payable for late submission but this is capped at the amount of tax outstanding as at 31 January.  Therefore, if any outstanding tax liability is fully paid by this date then the penalty is reduced to nil, although the penalty may be issued automatically and an appeal will need to be lodged with HMRC. 

If a business partnership tax return is filed late then there is a penalty of £100 for each partner in the partnership and this applies even if all of the partners pay their taxes by 31 January 2010. 
HMRC will charge daily interest after the 31 January deadline, currently at three per cent, until it receives the payment. This is also the date by which taxpayers maybe asked to make any first 'payment on account' for the current 2009/2010 tax year.

Those filling online will need to take into consideration the time it will take to register. New online filers, will need to register on HMRC's website at www.hmrc.gov.uk/sa and click on "Register for Self Assessment Online.
Lagerberg continues, "Many websites with facilities to register online give access to account information immediately but HMRC's online filing requires individuals to register and enrol for an account, which includes waiting for an activation PIN to be posted to a home address which can take seven days to arrive."

For further information, please contact:
Marielle Legair, Grant Thornton press office 020 7728 2183