HMRC issues penalty warning for paper tax returns
10 October 2011
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Now the 31 October deadline for paper tax returns has passed, HM Revenue & Customs (HMRC) is reminding small business owners and the self-employed that they must submit their return online – or face new penalties.
If you send in a paper tax return on or after 1 November, you will now be hit with a £100 penalty – even if there is no tax to pay or the tax due is paid on time – following the introduction of a new penalty regime this year.
 
The longer you delay, the more you'll have to pay, as there are further late-filing penalties after three, six and twelve months. 
 

Submit your return online – get three extra months to complete it

If you can't send your paper return by 31 October, you can still avoid a penalty by sending your tax return online instead.
 
However, if you do send a paper return after the 31 October deadline, you cannot avoid the initial £100 penalty by subsequently filing online.
 
If you send your tax return online, you'll get an extra three months to send it, as the deadline is 31 January. There are other advantages too:
  • your tax is calculated automatically
  • you get an immediate online acknowledgement
  • your tax return is processed faster, so any money that you are owed is repaid more quickly.
To register for HMRC Online Services, go to www.hmrc.gov.uk/online.
 
For help and advice on completing a return, visit www.hmrc.gov.uk/sa or call the Self-Assessment helpline on 0845 9000 444.


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