Spring 2009 Newsletter Content Oh for a little hindsight Can't pay, won't pay? Shock in Essex Car tax You signed it Don't be late Age before beauty? IHT and falling prices More paper Shopping around Less paper PAYE or not PAYE... Flat rate scheme A change of heart There are limits Do your duty Free lunch VAT a mess Dissatisfaction guaranteed Don't believe it! Too late Tax on tick £100 note Temp reminder

£100 note Since the start of self-assessment in 1996/97, filing a tax return after 31 January has triggered a £100 penalty. This year it's more complicated - if you filed a paper return for 2007/08, the deadline was 31 October. If you missed that, you could file online up to 31 January 2009. The penalty notice is issued shortly after 31 January if no return has arrived. It's cancelled if you have a reasonable excuse - which is quite hard to show - and it's also reduced or wiped out if you have already paid all your tax for the year. So if you know how much to pay, but you can't get the return in, you can avoid the £100 penalty. If you are due a repayment of tax, they very generously won't charge you £100 for claiming it late. HMRC have announced that they are reviewing the rule which reduces or cancels the penalty. They don't think the present rule is harsh enough to encourage the hardcore late filers to change their behaviour. For now, it's still a rap on the knuckles for someone with a large tax liability, and nothing for someone with nothing to pay - but don't rely on that continuing. The more important date is 28 February. If you miss that as well, there is a surcharge of 5% of the tax outstanding. If you can't get the return in by then, it's definitely worth making an estimated payment to bring down the tax-geared penalty. Of course, we are here to help you meet your filing deadlines - but we need the information in good time. If you expect to have difficulty providing it, please let us know so we can decide what to do.