Paper Self-Assessment tax returns for 2009-10 have to reach HMRC by 31 October 2010 otherwise you risk being charged a late-filing penalty. Here is a recap of the rules.

Introduction

Many of those who complete a tax return have now switched to filing online which still allows you to file by 31 January 2011 for the 2009/10 tax year. However for many taxpayers this is either not possible or practical or they still prefer to complete and submit a paper return – in which case they have to do so by the earlier deadline of 31 October 2010.

Particularly if you are in the latter group, and haven’t done so already, make sure you now start gathering the information you will need so that you have everything to hand when you come to complete the tax return.

Recalling the postal difficulties experienced by paper filers in October last year, it would be good to get your return submitted well before the deadline, especially as 31 October falls on a Sunday this year.  

The long and short of it

There are two types of paper tax return – a short version and a long (or ‘full’) version. Both the full tax return and the short tax return have changed little this year in layout. You can only use the short form if HMRC send you one – unfortunately if they have sent you the long one, you have to use it and cannot ask for the short one instead.

There are some situations when you cannot use a short tax return even if you have been sent one. If you find that to be the case, you will need to obtain the full version and any additional pages you require. These can be downloaded from the HMRC website (see useful links below) or you can call the Self-Assessment helpline on 0845 900 0444 (Text Relay prefix 18001, Textphone Taxes contact centre 0845 302 1408).

But it is worth noting that even if you have made some small capital gains you will still be able to use the short tax return by following the instructions at box 7.4, now found on page 3. The short tax return can also now be used if you are repaying an income-contingent student loan as noted in our earlier article.

If you use the full return and are entitled to the married couple’s allowance (basically where you are married or in a civil partnership and one of you was born before 6 April 1935), make sure you note that this is claimed by completing the boxes on page 3 of the separate ‘Additional information’ sheet. This can be easily missed.

Key pointers

Things to remember when filing your 2010 paper tax return are:

Online filers

HMRC offer free software on their website for most who feel confident to file online and have access to a computer and the internet (see HMRC’s website and follow ‘do it online’ from the home page). Exceptions to this are partnership, and trust and estate returns (see below). The main benefits, apart from the later filing date, are:

If you wish to make the switch to online filing, you should not leave it too late to register as it will take several days before you receive the authorisation code which enables you to get started.

If you are unable to file online because of problems with HMRC’s online service and are instead forced to file a paper return to meet the 31 January deadline, then you should appeal against the penalty on the grounds that you had a ‘reasonable excuse’ for missing the deadline. Details of how to make a ‘reasonable excuse’ claim can be found on HMRC’s website (see useful links below) and you will be asked to give details of any on-screen error messages that appeared.  

Partnerships, Trustees and Executors – beware!

As we warned last year, there is little publicity from HMRC of the fact that if you want to file your partnership tax return online you need to buy commercial software. HMRC software is only able to accept information for the partnership pages in individuals’ tax returns and there is no facility to file the separate partnership return using their software. The same also applies for trustees and executors filing trust and estate tax returns – these can only be done through commercial software.

Your options are therefore to:

• submit a paper version of the partnership/trust and estate return by 31 October; or

• purchase a commercial software package (HMRC gives a list of commercial software providers on their website – see useful links below) and register through the HMRC online services well before 31 January to give time for the authorisation code to be sent out. Note that you also need to register each partner separately if they want to file their returns online.

There are fixed penalties applied of £100 per partner for filing a partnership return late.

Useful links

Download Self Assessment tax return pages from the HMRC website

LITRG ‘reasonable excuse’ guidance.

HMRC guidance on how to make a ‘reasonable excuse’ claim

HMRC’s list of commercial software providers

The LITRG website gives further guidance generally on self assessment.

Article Added Monday, 27 September 2010 | 1022 Hits

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