The self assessment tax return system is about to undergo its most significant change since its introduction.
Taxpayers who wish to submit a paper return must now do so by 31 October.
Previously, there were two dates for filing a paper return: 30 September and 31 January, depending on whether the taxpayer wished HMRC to calculate the tax owing.
But as from this year (the tax year ending 6 April 2008 and onwards), there is only one paper filing date: 31 October.
Taxpayers who file late paper return, but pay all of their tax outstanding before 31 January 2009, will have their penalty ‘capped’ at zero. So a late paper return will not, in 2008, accrue a penalty provided that the taxpayer pays the tax by the due date.
However, this arrangement is unlikely to apply in the future as HMRC have made it clear that they are retaining the cap to allow taxpayers a soft landing in the first year of the new process and because the penalty regime review is next to address penalties for late returns, unifying these across all taxes, in a similar way to the new penalties for incorrect returns.
Partnership returns are not capped.
Online returns can still be submitted up until 31 January.
Last year, some 4.5 million taxpayers opted to file paper returns.
If you would like help and guidance on submitting a paper return, please don’t hesitate to contact us.
Date:3 October 2008
|
