A MERSEYSIDE accountancy firm is warning small businesses and sole traders to be aware of the approaching January 31 deadline for submitting their self-assessment tax return.

Liz Elliot of McEwan Wallace said: “Those people who are only now either beginning or who are still to complete their tax return online must remember one thing: doing nothing is not an option.

“HMRC have introduced an automatic £100 fine for those who miss the deadline, even those who do not owe any tax, and £10 for each extra day up to a maximum of £900.

“After that it is a further £300 fine or 5% of the tax due whichever is higher, so it is important to act now.”

McEwan Wallace has issued the following tips:

• Don’t panic – sounds easy but a calm approach will always help.

• Prepare well – dig out all relevant documents such as your forms P60, P11D or P45 Parts 1A and your 2010-11 and 2011-12 PAYE Coding Notices, business records or accounts, bank statements, records of receipts and expenses and personal pension contributions certificates if you have any.

• Take the plunge - if you’ve not started already, find your unique taxpayer reference number (UTRN) and log on to the HMRC site and see how far you get.

• Take your time – it is important to fully understand the questions being asked by HMRC rather than rush in with information that is not needed or relevant.

• Remember ISAs are tax-free so you do not need to enter income from these.

• In some unexpected, unforeseeable or exceptional circumstances HMRC may extend your deadline. Examples include loss of important documents through theft, flood or fire which cannot be replaced in time, serious illness or the death of a partner.

• If your tax affairs are complicated do not hesitate to seek expert advice form tax specialists.

• Finally, HMRC operates a self-assessment helpline 0845 9000 444 from 8am till 10pm.