January 2006

JANUARY TAX DEADLINES

Tax Return

If you need to complete a tax return for the year ended 5 April 2005 you must send it to the Revenue and pay any liability by the end of this month.

If the tax return late is filed late you will be liable for an automatic £100 penalty plus interest at 6.5% on any tax still owed.

Furthermore, If you have not settled your bill by the end of February there will be a 5% surcharge.

Pension Carry-Back

If you have not used your full personal pension allowance for the tax year ending 5 April 2005 you have until the end of this month to make extra contributions and treat them as though they were made in the previous tax year. There is an added urgency this year, as carry-back will be abolished at the end of this month.

You will get tax relief as you would with any normal pension contribution. Higher-Rate taxpayers can therefore claim back an extra 18% of the total contribution.