October 31st Tax Return Deadline
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Taxpayers prepare as tax deadline approaches Britons must have filed their paper tax returns by October 31st - and need to file online if they miss this deadline. Filing a tax return is a necessary part of millions of Britons' financial planning. And, as the nights draw in and the weather gets colder, many minds are turning towards an important upcoming date on the tax calendar. |
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The date also affects many small business owners - not just the self-employed. Individual self assessment tax returns must be filed by business owners if their firm is run as a partnership. In addition, a nominated partner also fills in a separate Partnership Return, highlighting the ownership structure of the company and how much each partner took of its profits - and, therefore, each individual's tax liabilities.
In the main, most people will want to avoid a late payment as they are in line for a £100 fine if they miss the deadline. This fine is charged both for partnership tax returns and individual tax returns.
If you need to prepare a return but are short on time, or if you miss the deadline, it is still possible to register for online filing or engage an accountant to file a return on your behalf. By contacting an accountant or registering for online filing your filing deadline will be extended by three months to 31st January.
Why the deadline was imposed
A potential source of confusion on this issue has derived from the fact that the paper return deadline comes three months before the online deadline of January 31st. Plans for this split were originally included in the Finance Act 2007, with the new dates enforced from April 2008. One of HMRC's reasons for imposing the split between these two deadlines is simple: by forcing people who generally fill in their returns in paper form and deliver them by post to file earlier, they are encouraging more and more people to use the internet to file. This in turn improves efficiencies for the authority.
In fact, HMRC says that customers benefit from online filing, as their liabilities are generally calculated faster, money owed is repaid more quickly and acknowledgement that HMRC has received their return is made immediately. It seems that more and more people are also taking note of this advice - last year, 3.75 million people filed online - up from the previous year's total of three million.
However, some taxpayers may still prefer to file by paper form. It's also worth noting that there are, very occasionally, exceptions to the October 31st deadline - with certain individuals able to file their paper self assessment returns all the way up to January 31st. Only three categories are included in this consideration: trustees of registered pension schemes, companies which are liable to income tax but are classified as non-resident in the UK and customers who, as yet, lack the facilities to file online because neither HMRC or commercial software products cover their individual tax circumstances.
This last category includes some people who currently find themselves unable to file online because HMRC has imposed specific "safeguards" on their tax records, resulting in their not being recognised through the online authentication system. In these cases, HMRC provides a solution by allowing the taxpayers to prepare their returns electronically, print them off on to paper and then send them in by post.
Tips for tax returns
The Chartered Institute of Taxation (CIOT) has issued advice on paper returns, pointing out that some of those looking to send out their returns just prior to the deadline might, after all, be liable for the fine. According to the organisation, just putting the return in the post prior to the deadline date might not be enough to avoid the penalty if the documents themselves arrive late. Instead, CIOT said that careful customers should always retain some form of proof of having posted the return, to cover themselves against all eventualities. This could include a simple note of the time and date at which they delivered the return.
Last year HMRC relaxed the October deadline to Tuesday November 4th in order to accommodate those who had forgotten the deadline. This year HMRC have advised that any return which is delivered by hand and found in their letterbox on Monday 2nd November will be treated as being filed on time and will not receive a late filing penalty or be subject to an extension to the HMRC enquiry window. Moreover, returns delivered by hand on 2nd November or found in the letterbox on Tuesday 3rd November will also not receive a late filing penalty, however the enquiry window for HMRC raising queries on the return will be extended to 31st January 2011.
The CIOT has also flagged up some cases where individuals originally intended to file their tax return on October 31st but missed the deadline - and cannot then file online due to software failure. According to the organisation, fines can still be avoided in some of these cases. "These taxpayers should send in a late paper tax return and, where they have a 'reasonable excuse' for being late with their return, taxpayers or their tax adviser can submit a 'reasonable excuse claim' with their return," CIOT commented.
Concerns about 'going online'
It should also be noted that the internet has not made tax transactions more problem-free in every way - customers have been warned recently that they must be web-savvy when it comes to their tax returns. According to a report in the Guardian, HMRC believes that scam emails are doing the rounds, where fraudsters are using convincing-looking addresses such as securemail@hmrc.gov.uk in order to lure personal details from their victims. Commonly, the cons work by an official-looking message telling a customer that they are in line for a refund on their tax and asking them to fill in a separate online form so that they can file a request to get the money back.
However, HMRC policy dictates that, while customers can fill in their tax returns online, they will never be informed via the web of rebates and no such online forms are ever put forward. Speaking to the newspaper, a representative added: "It is very important that anyone receiving [the emails do] not reply or provide any personal details. We are liasing closely with those agencies working to close down and prosecute those behind these scams."
How we can help
We are geared up to submit your paper tax return for you. If you would like to find out more about this service then please speak with a TaxAssist Accountant today on 0208 616 3319 or fill out our contact form.
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