Don't forget tax returns or face penalty of £100

Jan 20 2009 by Karen Dent, The Journal

SMALL businesses are being reminded to complete their online tax returns by the end of the month or face stiff financial penalties.

Those with self-assessment tax returns face a £100 fine from HM Revenue and Customs (HMRC) if they do not submit their information online by January 31.

Sarah Arnold, director of tax at Newcastle accountants and business advisers RMT, said: “Those who were unable to submit a paper form in October must file an online version by the end of the month.”

Businesses which were required to complete their return by October 31 last year also face the January 31 deadline to pay the balance of tax owed.

HMRC will charge daily interest on overdue payments not received by the end of this month.

However, the Government’s Pre-Budget Report in November pledged to help struggling businesses in the current economic climate by allowing them to agree a timetable of affordable payments with HMRC.

The Business Payment Support Service can also help people to avoid automatically-triggered late payment penalties or surcharges.

Financial Secretary to the Treasury Stephen Timms said: “The Government is determined to support businesses through these challenging economic times.

“The new dedicated Business Payment Support Service will ensure that businesses needing extra time to pay their tax bill can get a quick decision from HMRC.

“By speaking directly to an HMRC adviser, they should be able to agree an affordable payment timetable without incurring any extra charges, saving hard-working businesses both time and money.”

HMRC’s Business Payment Support Line can be contacted on 0845 302-1435 between 8am and 8pm, Monday to Friday, and 8am to 4pm at weekends.