Freelancers: don’t forget the self-assessment deadline

If you have not used the Revenue's online filing system before, it is important to note that you first need to register on HMRC's website. Immediately after registration you will receive a User ID, but the Activation Code will be sent to you by mail. It is therefore vital that you register as soon as possible, as it may be 10 days before the Activation Code is received.

People who have used the online filing system previously should make sure they still possess their User ID and password. The wait for a replacement can also be as long as 10 days, so it would be better to apply now and beat the January rush.

The Revenue also wants to remind people that the deadline for paper filing was at the end of October and anyone sending in a paper return now will automatically receive a £100 penalty. That applies even if no tax is due or you pay on time.

Slightly more than 10 million people should fill out Self Assessment tax returns for the tax year that ended in April 2011.

The Revenue has laid down a new set of penalties for people failing to comply with this requirement. Taxpayers whose return is filed more than a year late could find themselves paying a penalty equivalent to 100% of the tax they owe. Furthermore, people who pay their tax late will also face a new penalty regime.

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Image: Day 12- Reminders by Jinx!