Just days left to file paper self assessment tax return
The 31 October deadline for paper self assessment tax returns is
fast approaching and leading business and financial adviser Grant
Thornton is urging taxpayers to ensure they file early to avoid
postal delays or risk a £100 penalty.
The paper form deadline was moved forward three months to 31
October last year in an attempt to encourage more people to switch
to online filing, for which the cut-off date remains 31 January
2010.
Francesca Lagerberg, Head of Tax at Grant Thornton, says "An
estimated one million people are likely to submit a tax return for
the 31 October paper-filing deadline. If an individual prefers to
submit a paper return, they must ensure their return is in on time
or they will be subject to a late filing penalty of £100.
HMRC will automatically issue the fines to those who miss the
deadline and will only consider refunding or cancelling the fine if
filers can prove the late return was due to the postal strikes.
Late partnership returns will incur a £100 penalty for each partner
and late Trust and Estate returns result in a £100 charge to the
trust or estate.
"Some individuals may not want to use the online service if they
do not feel confident using a computer or do not want to go through
the registration process, which includes waiting for an activation
PIN via the post," Lagerberg continued.
There are a few cases where online tax returns cannot be made.
In these cases the deadline by which the paper return must reach
HMRC is 31 January. These are non-resident company tax returns,
trustees of registered pension schemes and certain individuals
where the relevant supplementary pages are not available
online.
The due date for the payment of any tax liability is still the
31 January following the end of the tax year, so for this year it
will be 31 January 2010. Where a £100 penalty has been issued in
respect of a late paper return, this can currently be reduced to
nil if the taxpayer pays their tax liability in full to HMRC by 31
January 2010, although this is under review for future years.
Lagerberg continues, "Many websites with facilities to register
online give access to account information immediately but HMRC's
online filing requires individuals to register and enrol for an
account, which includes waiting for an activation PIN to be posted
to a home address which can take seven days to arrive. It really is
worth getting tax returns and payments in order. On top of the £100
fine you can also be charged daily interest payments and a
surcharge of 5% on any tax owed."