Approaching deadline for HMRC self-assessment tax returns - is mailing your return via post office advisable?
Filing a Tax Return: Paper vs Online
For taxpayers who find the digital world challenging, filing a paper self-assessment tax return can be an accessible option. However, it comes with its own set of considerations.
Unlike online filing, which has an extended deadline of January 31, paper returns must be submitted by October 31. This earlier deadline can be an advantage for those who need extra time to budget and prepare a payment plan if necessary. However, it also increases the risk of potential postal delays.
Paper returns are manual and require the taxpayer to calculate their own tax liability if submitted after August 31. They must also manually determine which sections are relevant and cannot save progress to return to later. This can lead to errors, especially if HMRC finds it difficult to understand your handwriting.
On the other hand, filing online offers several advantages. It has a later deadline, the system calculates the tax liability automatically, pre-filled personal information is provided, and irrelevant sections are automatically removed. The system also allows you to save progress and return later, and built-in error-checking reduces the chances of mistakes.
However, most taxpayers are now required to file online, assuming access to the internet and familiarity with digital tools. Those without reliable internet access, the elderly, or people with certain disabilities may find paper filing more suitable.
Here's a comparison of the two methods:
| Aspect | Paper Filing | Online Filing | |---------------------|-------------------------------------|--------------------------------------------| | Deadline | 31 October (earlier) | 31 January (extended) | | Access | Available to those without internet | Requires internet access | | Form processing | Manual, must calculate tax manually if late | System calculates tax automatically | | User convenience | Must determine relevant sections | System removes irrelevant sections | | Editing | No saving in progress | Can save and return later | | Error checking | No automatic checks | Alerts to obvious errors | | Mandatory usage | Only allowed for exceptions | Mandatory for most taxpayers |
If you're planning to post a paper tax return to HMRC, you need to inform them by October 5. Remember, errors on a paper tax return must be crossed out, and the form must be signed; otherwise, it will be considered invalid. If in doubt about the accuracy of a paper tax return, it is advisable to consult a tax adviser.
People who may need to use the paper route include the visually impaired, less digitally savvy, and older taxpayers who have never submitted a tax return online. To receive a paper self-assessment form, taxpayers must contact HMRC and request a paper version of the SA100 tax return along with any supplementary pages.
[1] HMRC guidance on Self-Assessment: https://www.gov.uk/self-assessment-tax-returns/overview [3] Citizens Advice guidance on Self-Assessment: https://www.citizensadvice.org.uk/tax/self-assessment/
Personal finance decisions, such as choosing between a paper self-assessment tax return and online filing, can significantly impact interest rates on potential loans or investments.
When considering personal finance, it is essential to weigh the benefits of each method, such as the earlier deadline for paper returns and the convenience of auto-calculation in online filing, to make an informed choice that best suits your financial situation.
