Tax Deadline approaches for small business owners

If your a small business owner or are self-employed you need to ensure that you have completed your self-assessment tax returns in time to beat the January 31 deadline.

If you were sent a tax return by the 31 October 2007 then you must return the completed form to HMRC by the 31 January or you risk facing a fixed penalty payment of £100 as well as the possibility of further daily penalties being applied.

“If you haven’t yet started to complete your form you should now make this a priority and ensure that you have all of the relevant information to hand when completing the form.”

FSB Spokesman Simon Evans said “Before you start to complete your form then make sure that you have all of the relevant information and documentation to hand to ensure that you complete the form correctly, and if you haven’t started to complete your form yet, don’t panic, but make a start now.”

“It can be a good idea to compare your current return with those that you have submitted in previous years as this may help you to spot errors that you may have made.”Many small business people may also find it easier to complete their tax return online, but if you have not registered to do so then it is too late to start this process from scratch for this January”s deadline but it is an option to consider for the future.”

“Also remember that if you are self-employed you will need to pay any tax due by 31 January after the end of the tax year covered by the return. You may also have to make two payments on account for the tax year before the return for that year is due.”

“Payments on account will be made on 31 January in the tax year and 31 July after the end of the tax year (six months later). If these two payments amount to more or less than the tax which actually becomes due for that tax year, then a balancing payment (or repayment) will be due on the following 31 January.”

“The key message is not to miss the deadline of 31 January, so make the completion of your return a priority now if you haven’t already done so.”

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