Revenue to crack down on late returns

Filling in your tax return might not be as much fun as spending the weekend at the sales, but if you don't get the form and any outstanding tax for the 2003/04 tax year to the Inland Revenue by 31 January, you could end up forfeiting all the cash you saved on those must-have shoes.

Patrick Stevens, a tax partner at accountancy firm Ernst & Young, says: 'If you miss the 31 January deadline, you face a penalty of £100 with a further £100 charge if the return is still outstanding six months later. After a year, a potentially more significant penalty of up to 100 per cent of the outstanding tax [as well as the tax itself] may be applied.'

'Persistent late-filers risk suffering even more financial pain. The Revenue can ask the independent Appeal Commissioners for permission to impose a penalty of up to £60 per day. The Revenue has indicated that it will be more vigilant in cracking down on such individuals. And it doesn't end there. Late payment of tax attracts interest, and, in some cases, an additional surcharge.'

If you don't have the right supplementary pages for this year's sources of income, call the self-assessment helpline (0845 900 0444), or you can download what you need from www.inlandrevenue.gov.uk/individuals/fgcat-individualtaxreturn.shtml

Protection against floods


As thousands are left without electricity and many others left homeless by the floods ravaging northern England and Scotland, Esure has issued advice for homeowners to help protect themselves against storm and flood damage.

· Keep up to date on the flooding situation and weather bulletins with local radio and Environment Agency Floodline bulletins (0845 988 1188 or www.environment-agency.org.uk).

· Keep copies of all important contact telephone numbers and, if possible, policies in a dry accessible place, ideally upstairs.Where possible move valuable or water-damageable property from the ground floor to higher floors in the event of a severe storm or flood warning that could affect your property.

· Make a contingency plan so that you have an adequate supply of sand bags ready at all times and covers to fit over air bricks to your property, to prevent water entering the foundations.

· Keep an emergency flood kit in a safe place, upstairs if possible. This could include copies of important personal documents, a torch and portable radio with spare batteries, warm protective clothing, blankets, Wellington boots and gloves, cleaning equipment, a first aid kit and any essential medication. Also bottled water.

If the worst happens:

· Contact your insurer as soon as possible - most household insurance policies offer 24-hour emergency helplines.

· In the meantime, arrange for emergency temporary repairs as soon as possible to prevent any further damage. In most cases the insurer will cover the costs of repair work.

· Do not re-enter your property unless the all-clear is given. If you are flooded, turn off your mains electricity and gas, and do not use them or water supplies until you have been given permission by the utilities or local authorities.

· Where there has been flooding, disinfect floors and furnishings. Leave doors, windows and cupboards open and if possible keep rooms heated.

· Do not rush to redecorate. Speak to a builder or seek advice about using a de-humidifier. It may take some weeks for the property to dry out. Your insurer will arrange this for you.

Equity release on the cheap


Homeowners aged over 60 with properties at the cheaper end of the market have always struggled to find a lender who would allow them to unlock capital from their properties. But now Age Concern is selling a flexible equity release scheme for properties worth £30,000 or more.

The Age Concern Lifetime Mortgage also offers the options of a one-off lump sum, a monthly release or a combination of both. One-off loans start from £3,000, although much higher amounts are available. Monthly releases - taking regular cash amounts which are tax-free - can start from £50 per month.

The plan has no arrangement fee, saving customers an average of £500, no early repayment charges and no charge for advice. The variable interest rate, now 6.94 per cent, tracks the Bank of England base rate and is capped at 8.99 per cent for the life of the loan.

The Age Concern Lifetime Mortgage, which is provided by Northern Rock, has full Safe Home Income Plan accreditation and is regulated by the FSA. This means it has product safeguards, such as a 'no negative equity guarantee' so customers will never end up with a debt greater than the value of the house, nor will they ever be forced to leave it, and this is backed by a regulated and controlled advice process.

To request a free Age Concern guide Using your home to improve your finances call free on 0800 169 5276. Lines are open 8am to 8pm, Monday to Sunday.