If you were late with your 2008/09 self-assessment tax return, you will soon be receiving a notice from HMRC charging you a £100 penalty.

But, if you had paid all the tax you owed for 2008/09 by 31 January, or you didn’t owe any tax in the first place, the penalty can be reduced to nil. HMRC should do this automatically, but our experience shows they don’t.

Hint

If you receive a late filing penalty notice but had paid all tax by 31 January 2010, write to HMRC and point this out. They MUST reduce the penalty to nil, even if you were late with your tax return.

Haven’t paid

Whether or not you have submitted your 2008/09 tax return, if you still owe tax for that year and don’t pay it before 1 March, HMRC will hit you with a surcharge equal to 5% of the tax due. Even if he doesn’t know how much tax you owe, it wont stop them issuing a legally enforceable estimated demand.

Hint

If you’re late with your tax return and don’t know how much you owe for 2008/09, it’s still not too late to avoid a surcharge. Pay your best estimate of the amount due. Whatever you pay will go towards reducing the amount you owe and will also reduce the surcharge levied against you.

If you are late with your 2008/09 tax returns and need help in bringing your affairs up to date then please contact us at Accountancy Services Direct.

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