QUESTION: As a retired business owner I have always submitted my personal tax return on paper to HMRC. Will HMRC accept my paper tax return if I file it by today's October 31 deadline for my tax return for the year ended April 5 2022?
ANSWER: The October deadline for filing paper tax returns covering the 2021/22 tax year is October 31, and tax payers need to make sure they submit their returns by today or risk late filing penalties. The same date may also trigger further late filing penalties in relation to outstanding tax returns for the 2020/21 tax year.
If you are submitting a paper tax return to HMRC for 2021/22 you should complete it and submit it to HMRC today. And if you still have an outstanding return for 2020/21 which you wish to submit on paper, again you must do so today in order to avoid triggering further late filing penalties for the return being more than 12 months late.
If you intend to submit a paper return for 2021/22 and do not do so by today, you still have the option of submitting an electronic return by January 31 2023 to avoid late filing penalties.
However if a tax return for 2020/21 is submitted after today in paper form rather than electronically then the maximum automatic late filing penalties of at least £1,600 (or £1,000 plus 10 per cent of the tax due if greater) will eventually be charged.
Completing and filing a paper tax return by today’s filing date does not change the tax payment date so please don’t think that by delaying the filing of the tax return impacts the tax payment date. All tax due for tax year 2021/22 along with your first payment on account for tax year 2022/23 is due and payable by January 31.
You may have missed the tax return deadline due to an unforeseeable event. This would be classed as ‘reasonable excuse’ and grounds to appeal a penalty charge. If the appeal is successful then the penalties will be cancelled.
If you have not submitted your tax return because you are unable or cannot afford to pay any tax due, then be aware that HMRC regard submitting a return and paying the tax due as two separate and distinct obligations. Penalties will continue to build up if you do not submit the return and you will not be able to arrange a debt payment plan with HMRC while the return is outstanding.
HMRC’s guidance states that a reasonable excuse is something unexpected or outside your control that stopped you meeting your tax obligation for example an unexpected stay in hospital or the death of your partner shortly before the tax return deadline.
If HMRC reject your appeal you can request a review of their decision. The review will be carried out by another team from HMRC who have not been involved in making the original decision. If you lose at statutory review, they will provide you with details about how you can make a further appeal to the independent tax tribunal.
:: Malachy McLernon (m.mclernon@fpmaab.com) is partner at FPM Accountants Ltd (www.fpmaab.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.
