Tax Self Assessment

Tax returns covering income for the year ending 5 April 2011 have to be submitted to HM Revenue & Customs by 31 January 2012.

The most important thing to remember about the self assessment tax system is that it's your responsibility. You have to submit your tax return and pay the right amount at the right time. Don't wait for HM Revenue & Customs to ask or you could end up with a late payment fine.

Tax Returns

Your tax returns covering income for the year ending 5 April 2011 have to be submitted to HM Revenue & Customs by the 'filing date', which was 31 October 2012 for paper returns. However, all is not lost because the deadline for online submission is 31 January 2012. So if you haven't already submitted you now have up to 31 January 2012 to submit online. You can do this yourself or ask an accountancy firm to do this for you. But remember, time is closing in and accountants are very busy in the run up to 31 January, so don't delay too long before deciding that an accountant might be the best route.

Filling in the Online Form

Your online tax return must be completed as far as the total income on which tax has to be paid. You'll need to provide figures for every item, even if only estimates. Don't enter question marks or leave the tax inspector to decide whether an item is taxable or not. The only section that you can leave for the tax office to complete is the calculation of the tax due on your total income.

Penalties

If you don't meet the January 31 deadline there is a £100 penalty for late filing of tax returns. If it has still not been returned three months later, daily penalties of £10 per day will accrue, running for a maximum of 90 days. There will be further penalties of 5% of tax due for the return period (or £300 if greater) for prolonged failures, which arise after 6 months and again after 12 months.

Some Useful Dates 

31 January 2012     
- online tax return for 2010-11 to be submitted
- payment of balance of income tax and Class 4 National Insurance (NICs) for 2010-11
- payment of capital gains tax for 2010-11
- first payment on account of 2011-12 income tax and Class 4 NICs (normally half the total 2010-11 liability, adjusted for tax deducted at source)
       
31 July 2012 - second payment on account of 2011-12 income tax
       
31 October 2012 - deadline for filing 2011-12 paper tax returns

See Tax Guidance and Advice for more information