Paper Self-Assessment Tax Return Deadline 31 October: Take Action Now

With the paper self-assessment tax return deadline just days away, we look at what taxpayers need to do to meet the midnight 31 October cut-off date.

If the paper tax return arrives at HM Revenue & Customs (HMRC) later than Sunday 31 October, taxpayers are liable to pay a £100 fine.

Last year, HMRC announced that it would no longer be sending out paper tax returns. This was to be done in an effort to encourage people to use the online filing service. However, if you’re a traditionalist and insist on compiling a paper tax return, you will need to send an SA100 form and make sure that it is received before 31 October.

It is also crucial to note that the paper form must be actually received by HMRC by the 31 October so you will need to post it before then. If you are concerned about missing the deadline, you can still avoid a fine by submitting the tax return online (see section below about filing online).

If you are looking for information on filing US tax returns, read our guide.

How the late filing costs can add up

In addition to the £100 fine there is an additional £10 a day to pay up to a maximum of 90 days (£900), if there is no filing in that time.

Then there is an interest charge incurred after six months, at 5% of the outstanding tax due or £300, whichever is greater.

And if you still haven’t filed your return after a year, you’ll be hit with another five per cent or £300 charge, whichever is greater.

Taxpayers can appeal against penalty charges .

If you are self-employed or a high earner, you need to file a self-assessment tax return

The majority of UK taxpayers will have their taxes automatically deducted from their wages, pensions or savings and are therefore not required to file a tax return. However, tax returns are due from individuals or those businesses who don’t have their tax automatically deducted. Returns are also due if you’ve earned extra income that has not been taxed at source.

We’ve compiled this checklist for you to know if you need to submit a self-assessment tax return. If any of the following apply to you then you are required to submit one for the year 2020/21.

• You were self-employed and your income was more than £1,000.
• Your income was more than £50,000, and you or your partner claimed child benefit.
• You earned more than £2,500 from renting out property, or from other untaxed income such as tips or commission.
• You earned more than £100,000 in taxable income.
• You earned £10,000 or more before tax from savings, investments, shares or dividends.
• You need to pay capital gains tax.
• You received income from a trust.
• You earned income from abroad, or lived abroad and had a UK income.
• Your state pension was more than your personal allowance and was your only source of income (unless you started getting your pension on or after 6 April 2016).
• HMRC has informed you that you didn’t pay enough tax last year (and you haven’t already paid up through your tax code or voluntary payments).
• You filed a self-assessment tax return last year (even if you didn’t owe any tax). You’ll need to do this unless HMRC has already written to you to inform you that you don’t need to file one.

A Tax Return May Also Be Filed Online

HMRC discourages taxpayers to file online instead of using the paper-based process and most people now choose to do this. If you are one of the vast majority that file online then the deadline is midnight on 31 January 2022.

Whichever method you choose, the deadline to register for a self-assessment tax return was 5 October 2021. However, you should be fine if you register now. It is important that you register as soon as possible however as it may take up to 10 working days for your reference number to be received.

For further guidance on filing a return, you can visit the HMRC website and register online. HMRC will then set up your self-assessment online account and send you your unique taxpayer reference by letter. This consists of a 10-digit code that you will need the first time you log into the system.

However, if this is your first time submitting an online application and you already have a reference number, you may skip this step. If you submitted a paper tax return beforehand you just need to register for the online service.

Tax Bills Also Need To Be Paid When Submitting Your Tax Return

It’s obvious that it is not only tax returns which need to be filed by 31 January 2022 as tax bills also need to be paid. The deadline for paying any tax owed for the previous year (2020/2021) as well as the first payment on account will also be due on 31 January 2022. If you miss these payments, you will be fined and also charged interest.

Payments on account are tax payments that are made twice a year by self-employed Self Assessment taxpayers to spread the cost of the upcoming year’s tax. They are calculated based on your previous year’s tax bill.

You may pay your tax bill via debit card, cheque or bank transfer. There’s also the possibility of paying at your bank or building society directly if you have a paying-in slip from HMRC.
HMRC also accepts money under the Faster Payments system. This allows cash to go through in a two-hour period.

However, there’s a limit on how much money can be transferred under the system which ranges from £5,000 to £100,000. Tax bills may no longer be paid using a personal credit card or at the post office.

What Happens If You Miss The Tax Deadline?

If you don’t submit your tax return on time, you will be charged a £100 penalty even if no tax is due.

There are also further penalties of £10 a day which are applied after 3 months up to a maximum of £900. After six months, there is a further penalty of 5% on tax owed or £300 (whichever is higher). This is repeated every year.

Other penalties apply for paying tax late. These are charged at 5% of the unpaid tax after 30 days, 6 months and a year. Interest at 2.6% is applied to unpaid taxes immediately.

There’s a useful online tool provided by government for calculating how much is required to pay in penalties as well as interest if a deadline is missed.

The Government provides help sheets and videos for guidance on submitting your tax return.
You can also contact HMRC for advice directly by calling the helpline on 0300 200 3310. It’s open from 8am to 8pm on weekdays, 8am to 4pm on Saturdays and 9am to 5pm on Sundays. You can also get general help from HMRC customer support on their Twitter account.