Bosses urged to complete tax return as deadline looms

Businesses are being urged to treat with caution letters from the Inland Revenue claiming that they do not have to fill out a tax self-assessment form.

Accountancy firm Kingston Smith says you must complete and return self-assessment even if you receive the letter. It says the onus is still on the taxpayer to make sure they comply, and people could still be fined despite receiving the letter.

Andrew Shaw, personal tax partner at Kingston Smith, said: "Be equally wary if you are self-employed or a company director, as all such taxpayers must continue to complete a self-assessment form.

"These letters are issued automatically by the Inland Revenue's system, but the onus is still on the taxpayer to identify whether or not they should be completing a form."

Forms must be filled in and submitted to the Inland Revenue by January 31, or fines will be issued along with interest and a 5% surcharge on any debt outstanding. If the debt is not paid by February 28 another charge will be added.

• Pull together all your paperwork as soon as possible, including any bank and building society interest, charity donations, pension contributions, rent you receive from property and any other associated outgoings.
• Get your accounts information together if you are self-employed.
• Check your sums. Ensure that any amounts you enter add up.
• Ensure you complete all the boxes on the form that apply to you.
• Call the Inland Revenue hotline for help on: 0845 9000 444. The lines are open from 8am to 8pm, 7 days a week. Alternatively visit www.inlandrevenue.gov.uk
• Get professional help. If you really can't face completing the form yourself, seek professional help as early as possible. The sooner you contact your accountant the better.