More than 300,000 self-employed taxpayers could face fines if they miss a key HMRC deadline – London Business News | Londonlovesbusiness.com

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Taxpayers submitting a paper Self Assessment return must do so by October 31.

Although digital submissions are far more common, government figures show that 304,000 people still filed paper Self Assessment tax returns last year, compared with 11.2 million submitted online.

Digital and paper submissions follow the same rules: anyone earning over £1,000 outside of PAYE in the last tax year must declare and pay tax on these earnings, with the digital deadline falling on January 31.

If you submit a paper return late, missing the October 31 deadline will incur a £100 penalty. After three months, additional daily fines of £10 apply, up to a maximum of £900, with even higher penalties for longer delays.

Joe Phelan, money.co.uk business bank accounts expert, said, “Despite the introduction of Making Tax Digital (MTD) to enforce digital tax returns from April 2026, anyone completing a Self Assessment can still choose to submit a paper tax return this October for the 2024/25 tax year.

“In fact, the MTD changes from April 2026 will only initially apply to sole traders or landlords earning more than £50,000, before being phased in for those earning more than £30,000 from April 2027, and then more than £20,000 from April 2028.

“If you’re sticking with a paper tax return this month, here are some tips to help:

  1. Don’t delay: “The paper deadline is earlier than the digital one, and postal delays could affect submission. HMRC must receive your return by October 31, so post it well in advance.
  1. Carefully check your figures: “Unlike the online portal, paper returns require manual calculations, increasing the risk of errors. Gather all relevant financial documents and double-check your entries.
  2. Keep a clear and organised paper trail: “Send your return by recorded delivery and retain proof of submission. This helps avoid penalties and is legally required for at least 22 months after the tax year ends.

“As Self Assessment moves increasingly online, now may be the right time to make October 31 your last paper submission. Getting familiar with the digital process early can save you time and stress later, and you can find guidance on the government website.

“Using a dedicated business bank account can make the transition smoother, helping you track income, expenses, and deductions all in one place, which aligns neatly with the requirements of digital reporting.”



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