Scots urged to pay heed to upcoming tax return deadlines

Scots have been urged to pay heed to upcoming tax return deadlines, after figures show late returns cost them around £5.5m a year.

Advice Direct Scotland has reminded those still using paper self-assessment tax returns that these need to reach HMRC by October 31.

The free advice agency warned that an automatic £100 fine applies to late returns regardless of whether any tax is owed, with longer delays incurring increased penalties.

HMRC figures for 2022/23 indicate 20,000 people were hit with an automatic £100 penalty for missing the deadline by just one day.

The 8,000 people who missed the deadline by three months then saw their fines increase by £10 a day, up to a maximum of £900.

A year after the deadline, 2,000 people were still yet to file their returns – incurring additional fines of at least £600.

Andrew Bartlett, chief executive of Advice Direct Scotland, said: “For those who still fill out a paper tax return, it’s important not to miss this critical end of October deadline set by HMRC.

“If you do, you risk incurring a penalty on top of any tax that you might owe from the 2025/26 tax year.

“The deadline for paper returns is several months earlier than the cut-off date for the online version, so we want to help people get their returns in on time and avoid unnecessary fines.”

Those who may need to fill in a tax return include self-employed sole traders earning more than £1,000 during the tax year, and people needing to pay capital gains tax on items sold during the period.

It also includes high earners who have been asked by HMRC to complete a self-assessment return, or those who need to pay the high income child benefit charge and do not do so through pay as you you earn (PAYE).

People with untaxed incomes such as through property-letting, commissions and income from savings or investments may also need to complete a return.

Advice Direct Scotland said its advisers can help Scots looking to get their paper returns done in time for the October 31 deadline.

Mr Bartlett said: “Our service, taxadvice.scot, is there to help people in Scotland navigate the complexities of the UK tax system.

“Anyone across Scotland struggling to fill in their self-assessment forms or who have any other queries about their tax obligations can contact our expert advisers, completely free of charge.

“Anyone who is confused should know that calling HMRC isn’t their only option. You can visit taxadvice.scot or call us on 0800 756 3381.”