May Day alert for late tax returns

If you haven't sent in your 2011/12 tax return online, now is the time to act to prevent more penalties.

From May 1, HM Revenue and Customs (HMRC) will charge a £10 daily penalty for each day your online return is late, up to a maximum of 90 days. This is in addition to the initial £100 late-filing penalty for missing the January 31 filing deadline.

For paper returns, daily penalties started on 1 February, as they were due by the earlier deadline of 31 October. So don't send a paper return now, as it will trigger an amount equal to, or close to, the maximum daily penalty charge of £900.

Looking ahead, further penalties of at least £300 (or five per cent of the tax due, if that is more) will be issued for returns that are six and 12 months late.

Anyone who has received a late-filing penalty and thinks they don't need to be in Self Assessment, should call HMRC on 0845 900 0444. If HMRC agrees, the return and any penalty will be cancelled.