With the 31 October deadline for paper tax returns very close, HMRC is urging taxpayers to get their paper tax return in on time, or face a penalty.
Those that send in a paper tax return on or after 1 November, 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. Also, the longer they delay, the more they'll have to pay, as there are further late-filing penalties after three, six and twelve months. Those that can't send in a paper return by 31 October can still avoid a penalty by sending their tax return online instead by 31 January. However, if they send in a paper return after the 31 October deadline, they cannot avoid the initial £100 penalty by subsequently filing online.
This was first published in October 2011