IT’S that time of year when people should have just finished filling in their self-assessment tax returns for another year.

However, with around 10 per cent of Britain’s self assessors expected to miss the January 31 deadline, their winter blues could continue for many months to come.

In spite of an automatic penalty it has been predicted that around 900,000 taxpayers will receive the £100 fine for failing to return their forms by the deadline.

They also run the risk of receiving a further £100 fine if their forms have not been returned by July 31, 2008, plus paying interest on all the tax that is owed.

On top of that, taxpayers will be hit with a one-off 5 per cent surcharge on all unpaid tax from February 28, 2008 - 28 days after the original deadline. Additionally, interest will also be payable on the surcharge if it is not paid within 30 days of the date of the notice.

Fortunately, even if the January 31st deadline is missed – it may not be a total disaster.

Not all of those who file late will be subject to the £100 penalty charge, as it is capped according to how much tax is actually due on that date.

For instance, if someone is late but they owe no tax, typically because it is collected via their PAYE employment, then there would be no penalty for the delay.

And if the reason for filing late is a good one, HMRC may waive the fine altogether – but the circumstances would have to be extremely exceptional, as HMRC sent out the tax returns in October 2007.

In essence, the best advice is to always get your returns in on time and get them right – so start planning now.

A good tip is to keep everything you receive that is liable to tax, between April 6 in one year and April 5 the following year, in a box or file, which will help make filling in your tax returns that bit easier.

January 31, 2009, will be here again before we know it – so don’t bury your head in the sand for another 12 months, get organised now and be ready for your next tax return landing on your doormat.

For further information, contact Tony Medcalf, partner and head of tax at Moore and Smalley Chartered Accountants and Business Advisors, on 01772 821021.