Deadline for paper tax returns approaching

The 31 October 2011 deadline for filing paper tax returns is only a few days away

Anyone filing a paper tax return will need to ensure it is filed with HM Revenue & Customs (HMRC) by Monday 31 October 2011 or a face late-filing penalty. 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. The longer you delay the more you will have to pay, as there are further late-filing penalties after three, six and 12 months.

Avoid penalties – file online

If you can’t send your paper tax 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 £1000 penalty by subsequently filing online.

Benefits of filing online

In addition to having an extra three months to file your tax return online, as the deadline is 31 January there are other advantages to filing online including:

•             your tax is calculated automatically

•             you get an immediate online acknowledgement

•             your tax return is processed faster, so money that you are owed is repaid more quickly

Guidance

There is guidance on nibusinessinfo.co.uk that will help you understand the process of filing online and how to register with HMRC for online filing. See below

•             Understanding and using Self Assessment Online

•             The different ways you can file your tax return online.

Source: nibusinessinfo.com