The 31 October deadline for paper returns is only days away, HMRC is urging individuals and businesses to get their paper tax returns in on time, or face a penalty. New penalty regime was introduced this year and paper tax returns submitted on or after 1 November will now incur a £100 penalty – even if there is no tax to pay or the tax due are paid on time. The longer the delay, the more there will be to pay, as there are further late-filing penalties after three, six and twelve months as follows:
• an initial £100 fixed penalty, which will now apply even if there is no tax to pay, or if the tax due is paid on time;
• after three months, additional daily penalties of £10 per day, up to a maximum of £900;
• after six months, a further penalty of 5% of the tax due or £300, whichever is greater; and
• after 12 months, another 5% or £300 charge, whichever is greater. In serious cases, the penalty after 12 months can be up to 100% of the tax due.
So act now or... consider filing your return online. Filing Online has a number of advantages, such as later deadline – 31st January; you will get an immediate online acknowledgement and your return is processed faster, so any money owed to you is repaid more quickly.