If you have failed to send in your tax return for the 2010-11 tax year you may have received an unwelcome Christmas or New Year letter from the taxman detailing a fine of £1,300 or more. However, there are a number of things you can do to mitigate or even remedy the situation. Richard Mannion, national tax director at Smith & Williamson, sets out five steps.
1. The first question to consider is whether you have a reasonable excuse for the delay. HM Revenue & Customs' guidance gives examples such as documents being lost through theft, fire or flood, serious illness and bereavement. But bearing in mind that we are now a year down the track, this will be a high hurdle to jump.
2. The next question is whether you should really be in the self-assessment system. It may be that your tax affairs are straightforward and you don't need to complete a tax return, in which case you can be taken out of the system and the penalties will be cancelled. HMRC guidance advises taxpayers in this position to call the Self-Assessment Helpline and they will tell you whether you still need to complete a tax return. The number is 0845 900 0444 and available from 8am to 8pm Monday to Friday, and from 8am to 4pm on Saturday.