12:09 PM, 24th November 2010, About 11 years ago
HM Revenue & Customs (HMRC) has issued a warning to anyone who hasn’t yet sent in their self-assessment tax return – file online or face a £100 penalty.
The October 31 paper-filing deadline has passed, so anyone filing a late paper tax return could be liable to a £100 penalty.
If you’re filing your return online for the first time, you’ll first need to register for online filing at www.hmrc.gov.uk/online.
You’ll be given a User ID, and an activation code will be posted to you within seven working days, but could take up to 14 days to land on your doorstep. Once you’ve received your activation code you can file online.
If you’ve filed online before, make sure that you have your User ID and password – it can take seven working days to get replacements, so don’t leave it to the last minute if you need them.
The deadline for online self-assessment returns is Monday January 31.
More than 9 million self-assessment returns are sent out by HMRC every year. Last year, 2.6 million taxpayers filed their returns late.
Meanwhile, hundreds of tax loopholes could be sealed and lost by the end of this tax year (April 5, 2011) following revelations by a Treasury tax reform team that 1042 reliefs are currently available to taxpayers.
Helpfully, the Office of Tax Simplification (OTS) has even published a full list of the reliefs to download from www.hm-treasury.gov.uk/ots_taxreliefsreview.htm
The list includes about 130 inheritance tax and capital gains tax reliefs, many involving paying less tax on property – especially business and agricultural holdings.
OTS chairman John Whiting is asking anyone paying less tax by exploiting one or more relief to write to him with their views about keeping or scrapping the rule.
Surprisingly, this is the first time the government has collected details of tax reliefs in one list – and now accountants are crunching numbers to see how much tax is involved in applying the rules.
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