SMALL businesses are being advised to complete their self-assessment tax returns now to avoid hefty fines.

Alan Chesterfield, who runs TaxAssist Accountants in Leatherhead, says businesses must submit their tax returns by January 31 or face a fixed penalty of £100, even if they have no tax to pay or have paid the tax they owe.

He said: "Christmas and New Year can be a hectic time for small businesses, particularly those involved in the leisure or tourism sectors or retailers, for whom Christmas gift buying and New Year sales can be one of their busiest periods.

Businesses that are three months late face an extra £10-a-day penalty, up to a maximum of £900. Greater penalties can apply after 6 and 12 months.