Funnily enough I have just been doing exactly that.
What has been said is good advice.
I have a Pzr III that I am modding to an Ausf N. The HL moulding was pretty poor with dips in the shell , air intake covers and I had a load of holes to fill.
Best way to go about it:
Glue small squares of styrene behind the holes.
Use car body filler to fill them.
Leave it a day or so to fully dry out, yes it does shrink.
Sand it down to get rid of the big bumps.
Use very fine emery and water to polish it down smooth.
Wait for it all to dry.
Apply a brush coat of any spare paint over the filled area.
Wait for it to dry.
Any imperfections will now show up.
Either apply more filler, or buy some super fine body filler.
Do the same again.
When sanding do not use more than light finger tip pressure, and use swift strokes, do not rub at one area to flatten it, you will simply create a crater.
When using emery always use water, you can polish the plastic and filler if you are careful enough.
Milliput White is great, it is superfine and you can mix tiny amounts of it. Due to the consistency it is also good for accurately positioning it. Brilliant for rolling welds etc.
The Sargent Green is also excellent, but a bit messy.
Both bond to the plastic and there is little or no shrinkage.
Snag with these is that they are expensive, and as for the Sargent Green, once you have opened the tube it starts to dry out inside.
If I tell you that I have just spent the best part of two days filling and sanding what I thought was a finished tank...you will understand that I learned a few lessons along the way.
Rob G