Money
Tax and benefits
Tax self-assessment - don't miss the deadline
With the deadline for filing self-assessment tax returns just around the corner, it's essential to get organised or face a £100 fine, writes Holly Thomas
Every year around 800,000 people miss the final deadline and are forced to fork out for the fine, plus interest on any outstanding tax liability.
The self-employed and higher-rate taxpayers are among the estimated nine million people who need to produce a tax return each year.
Whether you file online or using a paper form, your return needs to be with HM Revenue & Customs on January 31, for the tax year which ended on April 5 2007.
Filing online is favoured by the Revenue as it cuts down on paperwork.
It is also easier for you because it is automatically checked for mistakes and the calculations are done then and there, so you can see straight away how much you owe.
If there are any mistakes on a paper tax return, it will be sent back to you and so your corrected form will be late, resulting in a fine.
To file online, you must first register on the Revenue website at www.hmrc.gov.uk
You will be sent a personal identification number in the mail, so the earlier you register the better.
Around 2.9 million people filed this way last year - a 40 per cent increase on the previous year.
If you are employed you will need your P60 form, given by your employer to show what you were paid last year, and how much tax you paid through the pay as you earn (PAYE) system. You will also need your P11D form which shows any taxable benefits, such as private medical insurance or gym membership.
If you are self-employed you will need your accounts.
It is too late to request for your tax liability to be collected through PAYE, for those who owe £2,000 or less. If you want to do this next year, make sure you file your return by December 30.
Any tax liability needs to be paid by January 31. You can do this using online banking, at a Post Office or bank, or by post.
A Revenue spokeswoman said: "Our advice to self assessment customers is the same as it is every year - please file as early as possible and make payment on line if you can."
Next year the deadlines are changing. Paper returns will have to be with the Revenue by October 31 2008. If you file online you still have until January 31 to submit your returns.
* Holly Thomas is Deputy Personal Finance Editor at the Daily Express and Sunday Express. Holly's views represent her own opinions and are for general information only. Always seek independent financial advice.
