Self-assessment changes outlined

Date: 3rd April 2008

From this month, business owners making their self-assessment tax returns online will benefit from a longer deadline.

Under new plans, business owners and their accountants will have until January 31st to file online tax returns - and for paper returns, the deadline has been set at October 31st.

However, those filing paper returns are reminded by HM Revenue that they will still have until January 31st to pay any tax outstanding.

Paper returns filed after October 31st will be subject to a "late filing penalty".

According to HMRC figures, around 3.75 million self-assessment tax returns were filed online last year.

HMRC says that those filing returns online benefit from automatic calculation of liability, speedier repayment of any money owed and immediate acknowledgement that returns have been received.

The new tax year begins on April 6th and a tax return notice will be sent out to all those meeting the criteria to receive a tax return each year.