Cash Clinic

Published on Friday 4 July 2008 21:47

Q I understand that I will have to submit my tax return early this year. Can you confirm whether this is correct?

CR, Aberdeen

A Basically it depends on whether you submit your returns online or by paper.

If you receive a notice to complete your 2007-8 tax return by 31 July, the final deadline by which a paper tax return must be submitted to HM Revenue & Customs is 31 October, 2008, which is three months earlier than the previous deadline.

For returns that are submitted by this date, HMRC will calculate your tax liability. If the return is submitted late, an automatic penalty of 100 will be charged.

The 31 October date will remain the deadline for the submission of paper tax returns until further notice.

If you want to work to the old deadline of 31 January 2009, you will have to submit your return online. If, however, you want HMRC to calculate your tax bill, you will have to submit it online by 31 December 2008. If the return is filed after 31 January 2009, there will be an automatic penalty of 100.

If you are interested in online filing, I would suggest you speak to your accountant or register yourself at www.hmrc.gov.uk/online.

These dates for paying tax have not changed, therefore any balancing payments are due by 31 January 2009.

• Andrew Addie is tax director at Grant Thornton, Scotland

• If you have a question you need answered, write to Jeff Salway, Personal Finance Editor, The Scotsman, 108 Holyrood Road, Edinburgh EH8 8AS or e-mail: . These answers are for guidance only. No responsibility for loss occasioned by any person acting, or refraining from acting, as a result of these answers can be accepted by Grant Thornton or The Scotsman Publications Ltd