QUESTION: My accountant usually files my tax return, but since I have recently retired, I intend to file my own this year. I’'m not great with IT and would prefer to submit a paper return
ANSWER: HM Revenue and Customs (HMRC) no longer automatically send out paper tax returns. Instead, anyone who has filed a paper tax return in the past will have received a short notice as a reminder to file. However, HMRC will still send out paper tax returns to people it has identified as being unable to file online.
Since you have not previously submitted by paper before, you will need to request the paper forms from HMRC, telling them what types of income you will be reporting to they know what pages to send you.
Once you have included details of your income, expenses, and any relevant deductions or credits, you will need to sign and date the return before posting to HMRC.
The deadline for filing paper tax returns is October 31 following the end of the tax year, so your 2023-24 return would be due by the last day of this month. Given that we are already in October, that might be a tight turnaround if you have not yet received the paper forms from HMRC.
Filing your paper tax return after the October 31 deadline can create penalties for late filing. Penalties start at £100 if you are up to three months late, even if you don’t owe any tax. This increases to additional £10 daily penalties if between 3-6 months late and increase further if even later.
If you know you will not get a paper form submitted on time, you have two options - continue to file late and incur the penalties, or revert back to filing your tax return online. The online filing deadline for the 2023-24 tax year is January 31 2025.
If you believe that you have reasonable grounds for filing your tax return late or disagree with the penalties imposed, you have the right to appeal to HMRC. You can do this by submitting an appeal online or in writing, providing a clear explanation of your reasons.
In conclusion, filing your UK tax return on paper by the October 31 deadline is a traditional but valid option.
However, for this year it might make sense to continue to file online if you have not already started the process to avoid penalties.
- KellyAnne Murtagh (kellyanne.murtagh@aabgroup.com) is senior tax manager at AAB Group Accountants Ltd (www.aabgroup.com). The advice in this column is specific to the facts surrounding the question posed. Neither the Irish News nor the contributors accept any liability for any direct or indirect loss arising from any reliance placed on replies.
