Tax return deadline just around the corner

The 31 January tax return deadline is just around the corner, so if you haven't sent your return to HMRC yet, you need to act quickly to avoid a £100 penalty.

If you haven't yet filed your 2007/08 tax return, you must send it online to HMRC by the 31 January deadline - file on paper and you could receive a £100 penalty, as the new 31 October paper-filing deadline has now passed.

The number of online returns received by HMRC hit 3 million this week - a 39 per cent increase on this time last year - and they now outnumber paper returns for the first time ever. This includes 620 people who filed their tax return online on Christmas Day.

Registering for online filing is simple - visit the HMRC website at hmrc.gov.uk/sa and click "Register for Self Assessment Online". Once this is completed, a pin number will be sent to you in the post - it may take up to seven days for this to arrive, so you must register now, if you haven't done so.

And don't forget, 31 January is also the deadline for paying any tax you owe for the 2007/08 tax year.

HMRC's Stephen Banyard said: "If you haven't filed your return yet, don't worry - there is still time. But you will need to make sure you have registered by 21 January, to allow enough time for you to receive your activation code and file online."