Are you ready for the upcoming tax return deadline?
If you submit your Income Tax Self-Assessment (ITSA) on paper, you should be aware of the upcoming deadline on 31 October 2023.
Submitting your tax return past that date will incur penalties and fines.
However, there is a simpler way to submit your ITSA online and the deadline is much later in the tax year.
The risks of sticking to paper
There are numerous risks associated with filing paper ITSAs:
- Risk of late submission: Paper tax returns are subject to postal delays, which can result in late submission and subsequent fines.
- Human error: The manual process of filling out paper forms increases the likelihood of errors, such as miscalculations or incorrect information, which can lead to penalties.
- Limited accessibility: Paper forms require physical storage, making it difficult to access historical tax data when needed.
- Lack of real-time updates: Unlike digital systems, paper submissions don’t offer real-time tracking or updates on the status of your tax return.
- Environmental impact: The use of paper forms contributes to waste and is less sustainable compared to digital options.
- Inefficiency: Paper-based submissions often require more time for both preparation and processing, making it a less efficient option.
- Security risks: Paper forms can be lost, stolen, or damaged, putting your sensitive information at risk.
Digital solutions, on the other hand, alleviate many of these issues and help you streamline your tax filing process.
Making Tax Digital
Making Tax Digital (MTD), the UK Government’s ambitious initiative to tackle all tax administration online, seeks to have almost 100 per cent of businesses submitting their tax returns online in the next few years.
MTD aims to make it easier for individuals and businesses to manage their tax affairs more efficiently and reduce the risks involved with paper submissions.
Why transition to MTD?
- Accuracy: Digital tax software minimises the risk of errors by doing all the calculations for you. It also allows for real-time updates, ensuring that you’re always aware of your tax liabilities or refunds.
- Convenience: With MTD, you can file your tax returns anytime, anywhere, as long as you have internet access. No more last-minute rushes to the post office!
- Security: Digital platforms have robust security measures in place to protect your sensitive information.
- Environmental benefits: Going digital is not just good for you; it’s good for the planet too. By reducing the need for paper, you’re contributing to a more sustainable future.
- Future-proofing: As the Government moves towards making all tax digital, transitioning now will save you the hassle later on.
How to transition
Talking to an accountant is the first step in the process of streamlining your obligations.
As the paper tax return deadline looms, consider the transition to MTD and speak to a financial expert to make the system move smoother.
Not only will you be avoiding the stress and potential fines associated with paper returns, but you’ll also be stepping into a more efficient, secure, and eco-friendly way of managing your taxes.
Don’t wait for the deadline to catch you off guard, contact Moore Thompson’s accountants today.