Self-assessment paper deadline looms - what you need to know

The self-assessment deadline strikes at the end of this week. If you want to submit a paper tax return you have until Midnight on Saturday 31st October to make sure that the paperwork arrives at HMRC (although you don't need to pay until the beginning of next year). The penalties for missing self-assessment deadlines are harsh, so it's worth knowing what this means for you.

There are a number of groups who need to send returns, so it's worth checking if you think there's any chance you should fill one in. Some of the largest groups include the self-employed, anyone who gets more than £2,500 in untaxed income (for example from savings or renting a property out), and anyone who has made £10,000 or more from savings and investments.

Higher earners may have to fill in a return too: if they earned more than £100,000, earned over £50,000 and received child benefit, or paid higher rate tax and received income from shares.
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Penalties

The penalties are painful. If you miss the deadline for filling your return, you will have to pay £100 immediately, and after 30 days you will pay another penalty of 5% of the tax due. If you are more than three months late with either the form or the payment you will be charged £10 a day (up to £900).

Then if you still haven't paid at six months, you will have to pay either 5% or £300 - whichever is greater. And after 12 months you will pay another 5% or £300. If HMRC decides you are deliberately withholding payment, you can be charged even more.

If you are determined to submit a paper form, then you will have to pay the penalties due. However, this isn't your only option: you can usually just fill in your form online instead. In an effort to get more people to switch to online returns, you have much longer to submit a return this way - until midnight on 31st January.

If you haven't submitted online before, bear in mind that you'll need to register before you can do anything, which takes up to 20 days. It's worth registering as soon as possible, to avoid falling foul of the next deadline too.