HMRC two-week deadline alert ‘or face £100 fine’

Taxpayers who still use paper for their tax returns are being warned to get their skates on as the deadline is fast approaching. A myriad of reasons may necessitate individuals to file their own taxes, ranging from self-employment to pensioners with incomes that surpass the personal allowance.

The cut-off date for submitting a paper version of the self-assessment tax return is midnight on October 31, 2024. It emerged in February 2024 that a staggering 1.1 million people had failed to meet the previous year’s deadline.

Missing this crucial date could see you slapped with an immediate £100 fine, with potential for additional penalties and interest to accrue. Dan Whittaker, a personal finance guru at VivaMoney.co.uk, has advised: “Those who earn over a certain amount of money each year are required to pay tax. Tax is usually deducted from an individual’s wage or pension automatically; however, those in receipt of other forms of income, including property and self-employment, will need to report their earnings to HM Revenue and Customs (HMRC) through a self-assessment tax return.”

He further clarified: “You will need to submit a Self-Assessment tax return if, during the last tax year between April 6, 2023, and April 5, 2024, you:

• Were a partner in a business partnership
• Had an overall taxable income of more than £150,000
• Were classed as a self-employed sole trader and earned more than £1,000 before taking off anything you can claim tax relief on
• Were required to pay the High Income Child Benefit Charge
• If you’ve had to pay Capital Gains Tax due to selling or disposing of something that has increased in value
• if you have untaxed earnings such as tips, commission, foreign income, payments from renting out a property, or income from savings and investments.

“If you’re unsure whether any of the above apply to you, you can use this handy tool on the Gov.uk website to check whether you need to send a tax return. It’s better to check, rather than miss the deadline and be hit with an unexpected penalty further down the line,” advises Dan.

“You can file your tax return online, or call HM Revenue and Customs and ask for a paper version of the form, known as a SA100,” Dan added. “Be sure to familiarise yourself with any possible call charges before you phone.”

When is the self-assessment tax return deadline?

Dan also provided information about the self-assessment tax return deadline: “If you choose to do a paper self-assessment return, this will need to be submitted before midnight on October 31, 2024. You have slightly longer to file online returns; these must be submitted before midnight on January 31, 2025. It might be an idea to set yourself a calendar reminder to avoid the risk of paying a penalty.”

Where to send your self-assessment tax return

Dan advised sending your completed Self-Assessment tax return paper form to the following address:

Self Assessment

HM Revenue and Customs

BX9 1AS

United Kingdom

Dan warned: “HMRC will use your report to calculate how much you owe. Your individual Income Tax band will be taken into consideration, and there’s also a different rate for Capital Gains Tax. Your Self-Assessment bill must be paid before January 31, 2025. It’s important to be aware that missing deadlines will usually result in a penalty.

“If your tax return is up to three months late, you will be charged a £100 penalty for delayed filing. You’ll also end up paying more, and will be charged interest on any late payments.

He added: “Depending on the circumstances, you might be able to appeal against a penalty. There are several reasonable excuses that may permit you to appeal, including postal delays out of your control, the death of a partner or close family member shortly before the tax return or payment deadline, and issues with the HMRC online services. You can view a full list of reasonable excuses on the Gov.uk website.”

Trusha Shah, tax manager at accountancy firm HW Fisher, added: “Last year 96% of people chose to complete their self-assessment tax return online. This means that while an overwhelming majority prefer to do their returns digitally, there are still some individuals who prefer to complete their return via post.

“If you are planning to complete your tax return by post, remember that the October 31 deadline is the date by which HMRC needs to receive all necessary paperwork – not the last day that you can send your return off in the post. If you don’t think you will have enough time, don’t fear – you can still complete your return online, for which the deadline is January 31, 2025.

“To avoid the risk of your return getting lost in the post, and to allow yourself more time to gather all the information that you need to complete your tax return accurately, we’d always recommend completing your return online. If you’ve not done it this way before, don’t worry – the process is very simple and there’s plenty of advice and tutorials available on HMRC’s website that you can follow.”