Filed Your Tax Return Yet?

If you still haven't filled in your tax return, then it's time to get your act together if you're not to face fines.

A few days ago my husband and I finally got around to filing his tax return. It always amazes me that it takes a good two or three hours to get all the necessary paperwork together in order to do the sums and yet so few of the boxes on the form end up being filled in.

Being able to file tax returns online has made things a lot easier though and if you haven't tried it yet you've still got time to apply for your User ID and password before the deadline of January 31st. Revenue & Customs say you need to register by January 24th if you want to submit your return online.

Around nine million taxpayers are required to file a tax return each year but only two million of us took advantage of the online service last year. Not only does the software automatically calculate your tax for you but you can pay the bill there and then online. If you're owed money (as I was last year) you also get your refund sooner.

The software leads you step-by-step through the process, enables you to save the details so you can come back to it later if necessary and also explains how your bill has been calculated. Unfortunately, the terminology is the same as the paper return so you still end up chewing your metaphorical pencil in puzzlement at various points when you're checking whether you've filled in all the relevant boxes. (What's 'deficiency relief' for Heaven's Sake!)

At any rate, if you've been dithering, it's time to get a move on. If you miss the deadline you'll face a penalty charge of £100 plus interest of 7.5% on the amount of tax you owe and further interest rate penalties will arise the longer you leave it. Ultimately, you may even find yourself under investigation - Revenue & Customs have a tendency to interpret lateness as having something to hide!

Give online self-assessment a go!