Self-assessment For taxpayers sending their self-assessment tax return for 2006/07 via the internet, HM Revenue & Customs (HMRC) must have received it by 30 December 2007 for the individual employee to have their tax liability calculated and any tax owing up to £2,000 collected automatically through their PAYE code in the following tax year. For those taxpayers sent a 2006/07 tax return by 31 October 2007, the filing deadline date is 31 January 2008. Returns received up to midnight on 31 January are on time and this includes returns received in HMRC Office letterboxes that are opened first thing on 1 February. Returns received up to midnight on 1 February are late but incur no late-filing penalty. Returns received from the morning post on 2 February and afterwards are late and incur a late-filing penalty. A fixed £100 penalty notice is issued if the deadline is missed. If the amount of tax underpaid is less than £100, the penalty notice is reduced to this amount. Where a return is not filed (regardless of whether or not there is an amount of tax to pay), a HMRC officer can apply to the General Commissioners to charge a penalty of up to £60 per day on the overdue return. This usually happens where it is believed that fixed penalties alone will not result in an individual filing their tax return. The final balancing payment of income tax and Class 4 NIC for 2006/07 is also due by 31 January 2008. Interest is chargeable at a daily rate of 8.5% if HMRC do not receive payment by this date. ‘Payment on account’ will be due from employees, normally equal to one half of the previous year’s tax liability, where this is £500 or more or the tax deducted at source through PAYE is less than 80% of the total liability. If the tax is not paid in full by 28 February 2008, an automatic 5% surcharge is imposed on the amount of unpaid tax for 2006/07 still outstanding at this date. For 2007/08 the main paper tax return for individuals has been redesigned. Form P11D (2008) has new box numbers down the right hand side of the form to align with this revised return. Taxpayers with relatively simple affairs, for example, employees (other than company directors) with form P11D benefits and the genuinely self-employed with a turnover of less than £30,000 (three line account cases from 2007/08 onwards) may be eligible to complete a short (four-page) tax return. For 2007/08 and subsequent returns, the filing period for paper returns will be reduced to seven months, with the new deadline set at 31 October (for 2007/08, 31 October 2008). The filing deadline for online returns will remain at 31 January following the end of the relevant tax year (for 2007/08, 31 January 2009). From 2009/10 onwards, the threshold below which ‘payments on account’ are not required is to be raised from £500 to £1,000. The first payments on account affected will be those due in January and July 2010. Paul Tew, Pay Magazine Snowdrop provides a range of Payroll solutions that are fast, flexible and easy-to-use, to suit the many and varied needs of each organisation. To find out more about the software and services that we provide, please click here >>