Self assessment deadline is approaching

The deadline for submitting 2010/11 self assessment tax returns online is 31 January 2012. Taxpayers should also be aware that payment of any tax due should also be made by this date. This includes both the payment of any balance of self assessment liability for the 2010/11, plus any payment on account due for the current 2011/12 tax year. Any taxpayers that are filing online for the first time should ensure that they register to use HMRC’s self assessment Online service as soon as possible. Once registered it can take up to 10 days for an activation code to be sent by mail. All filings must now be made online as the date for submitting paper returns has already passed. Any returns that are filed after the 31 January 2012 deadline will be subject to the new penalty regime which begins with the 2010/11 self assessment returns. The main features of the new penalty regime are as follows: From day one: taxpayers will be charged a £100 penalty even if they have no tax to pay or have paid any tax due on time. From 3 months late: taxpayers will be charged an automatic daily penalty of £10 per day up to a £900 maximum. From 6 months late: taxpayers will be charged additional penalties which are the greater of 5% of tax due or £300. Over 12 months late: there are additional penalties based on greater of 5% of tax due or £300. In serious cases this penalty may be increased up to 100% of tax due.