Tax return deadline approaches

Taxpayers have just one day left to register for HMRC’s self assessment online service.

The deadline for filing tax returns online is 31 January 2009, but HMRC cannot guarantee to process any registration application submitted after 21 January.

Using HMRC’s online system is a quick and convenient way to send in tax returns, but taxpayers cannot file online until they have registered and received an activation code through the post. To register visit www.hmrc.gov.uk/sa and click on “Register for Self Assessment Online”.

The number of taxpayers who file online has increased by more than a third this year and now outnumbers those who choose to send in paper returns.

Last year the deadline for those filing a paper self assessment form was brought forward to October 31st, meaning anyone who has not yet completed a self assessment tax form will need to do so online. Individuals who fail to return their form on time risk a £100 fine.

However changes to the PAYE codes for 2009/10 provided to taxpayers has led to an error on HMRC’s site, which it has admitted may prove confusing.

Taxpayers who use the HMRC system and have less than £2,000 to pay for the 2007/08 tax year could request that the tax was deducted from their income in the next tax year (2009/10) through PAYE, so long as they filed their return before the end of December 2008.

Although this option is no longer available, taxpayers can still pay tax owed for the 2007/08 year using the new 2009/10 PAYE tax code.