New Self Assessment Deadline for Manual Returns Is Just Weeks Away

HM Revenue and Customs (HMRC) has issued a reminder to anyone filing a Self Assessment tax return this year - there's now a new 31 October deadline for paper returns, and it's only weeks away.

Previously, both paper and online Self Assessment tax returns had to be filed by 31 January. But from this year, paper returns must be with HMRC by 31 October, or you could face a £100 penalty. The deadline for filing online returns remains 31 January.

If you file a paper tax return, you therefore need to get organised now. For example, start thinking about what information you need to complete your return, such as your P60, self employment accounts, records of your savings and investments, and details of any untaxed income.

Alternatively, you could switch to online filing. It's easy to register. Filing your tax return online has a number of advantages - your tax is calculated automatically, you get an immediate online acknowledgement once you've filed, and it's processed faster, so any money you are owed by HMRC is repaid more quickly.

Once you've filed your return, any tax due has to be paid by 31 January, whether you file on paper or online.

HMRC Introduces Streamlined Tax Returns And Extended Penalties

The self-assessment tax return for self employed people who do not use an accountant has been simplified, with fewer questions and easier language.

Questions about less common types of income and reliefs have been moved to the Additional Information pages, whilst there is a new two-page form for more straightforward, smaller businesses, with turnover below £64,000.

Although online SA Tax Returns still need to be filed by 31 January, the deadline for paper returns has been shortened to 31 October.

What the Tax Man giveth, he also taketh away!

The 2008 Finance Bill has also extended penalties for the period from 1 April 2008 (due to be filed by 1 April 2009)

HMRC will charge penalties for documents containing careless or deliberate inaccuracies that lead to understatement of tax liabilities, a false or inflated statement of loss, or inflated claim for the repayment of tax. Their aim is to crack down on those who do not comply, whilst helping those who do.

They suggest that reasonable care should be taken when completing forms because errors will be penalised, and recommend that early disclosure of errors will reduce those penalties.