Calls not being answered but HMRC's message is very plain

THE tax office came under fire yesterday for failing to answer customer calls, but taxpayers have been warned that failing to answer the 31 January deadline for self-assessment returns could be costly.

HM Revenue & Customs (HMRC) failed to respond to around 44 million phone calls during the 2008-9 tax year, the National Audit Office has revealed, answering just 57 per cent of calls. The record improved in the first half of last year although some 27 per cent of calls still did not get a reply.

The record is worse during the busiest times of year, such as January, ahead of the month-end deadline for filing tax returns online and for paying any tax owed from the 2008-9 tax year.

HMRC has reminded taxpayers required to file an online return that they face penalties for not doing so by midnight on 31 January. Taxpayers will be fined 100 if they file their self-assessment returns late, plus 5 per cent of any tax unpaid by the end of February, with no leeway given for the Sunday deadline. It is estimated that almost a million taxpayers were handed a 100 penalty for late returns last year.

Neil Mitchell, partner and head of tax at Baker Tilly tax and accounting in Scotland, stressed that the onus was entirely on taxpayers to complete their returns on time.

"This means that you may have a requirement to submit even though a tax return has not been issued," he said.

"Circumstances where a return is required include self-employment, company director, annual income of 100,000 or more and property or savings income of 10,000 or more. There are other situations where a return is required so if you are not planning on submitting be sure none apply."

If you have not previously completed a self-assessment form or used the online filing service, make sure you register for online submission at www.hmrc.gov.uk/sa. HMRC will then post out an activation code allowing you to file your returns online, although this could take a week to arrive.

While tax returns can be submitted online 24-hours a day, the system is generally quicker between 5pm and 8am. But although online filing is generally an efficient process, not all sources of income and gains can easily be completed, Mitchell noted.

"Where final figures are not available, estimates can be included and indicated as such on the tax return. Final figures can be submitted when available," he said.

But it's not all about giving. Self-assessment is an opportunity to claim any reliefs to which you may be eligible. For higher rate taxpayers, this can include personal pension contributions, while tax relief is available on charitable donations made through Gift Aid in the current tax year.

"Think back to all the donations and sponsorships you made in 2008-9 and don't forget admission fees that included donations" Mitchell advised. "Gift Aid donations benefit charities and give higher rate taxpayers refunds or reductions in income tax payable."