With the introduction of the personal allowance restriction for earners over £100,000 in April 2010, it has become nearly impossible for HMRC to issue correct tax codes for taxpayers subject to this restriction.

HMRC operate on historic information and therefore base the tax codes that they issue on the income details for previous tax years rather than on current salaries and benefits.

This can lead to large underpayments (or over-payments) of tax each year for taxpayers in this bracket.

To administer this and ensure that high earners are paying the correct amount of tax each year, HMRC now state that all taxpayers earning over £100,000 must complete a self assessment tax return.

The 2011-2012 Tax Return is due for submission by 31 January 2013 online (31 October 2012 for a paper return) and HMRC may have issued returns based on historical income information.

However, if you earned over £100,000 in the 2011-2012 tax year and have not been sent a tax return to complete by HMRC, it is your responsibility to inform HMRC of your need to complete a return.

It can take HMRC up to 6 weeks to issue tax references after you request a tax return from them.

Once these references are issued, it can then take a further 2 weeks for HMRC to issue online filing user names and passwords.

All told, it will take at least 8 weeks from you beginning the process with HMRC to being able to file the return.

Given the deadline for tax returns filed online is 31 January 2013, the sooner you register with HMRC, the better.

If you require any assistance with the registration process or completing your tax return for the year, please contact Christine Wallwork on 0161 975 6723 or via email at christinewallwork@cullenfp.co.uk for a quotation.