Those wishing to submit paper tax returns for the last financial year are being reminded they only have a few weeks remaining before the deadline.

Paper returns submitted after 31 October 2009 will be subject to a late penalty of £100. Any paper returns submitted after this date will also miss the deadline for HMRC to calculate the amount of tax owed, meaning tax will have to be worked out by the taxpayer themselves.

However, if returns are submitted online there is a three month extension on the deadline. The deadline for online returns is 31 January 2010.

Richard Mannion, national tax director at accountancy firm Smith & Williamson, said: “HMRC would prefer all taxpayers to submit their returns online.

“This is also a better option for the taxpayer because it reduces the risk of human error, namely, individuals keying in the wrong numbers in what would otherwise be a manual process. Also, if a refund is due, this should come through more quickly.”

For more information on submitting your tax return online visit www.hmrc.gov.uk/sa

© Crimson Business Ltd. 2009