SMALL businesses face penalties of £60 a day if they do not send in their tax returns by the end of the month.

Sole traders, company directors and business partners are among those required to fill in a self-assessment form, as well as high-earners.

Returns for 2003/04 must be submitted to the Inland Revenue by January 31, along with any outstanding tax.

Nationally, about 900,000 self-assessment forms, or ten per cent, missed the deadline last year.

Keith Williamson, small business specialist at the Northern Society of Chartered Accountants, said: "With less than three weeks to go to the deadline, taxpayers should act now to ensure their self-assessment returns are submitted on time, or risk the penalties."

Those having problems completing their returns are advised to contact their local tax office or a chartered accountant. Advice is also available from the self-assessment helpline on 0845 9000 444, or by visiting www.inlandrev enue.gov.uk