HM Revenue & Customs have urges residents (who need to file a tax return) to get the paper tax return within time, otherwise they have to face penalty. The last date of paper tax return is 31st October 2011.

In case someone delays tax filing by even a day, a penalty of £100 will be slashed on that resident. The late filing penalty increases with time. The penalties increase after 3 months, 6 months and 12 months.

Therefore for avoiding the penalty residents must send the paper return on or before 31st of October 2011. If a UK resident is not able to send the paper return within the stipulated date then also you can avoid the penalty by e-filing your tax return within 31st January 2012. Now, if someone send the paper tax return after 31st October 2011 and then again files the tax online before 31st January 2012, the penalty of £100 cannot be avoided.

There are various advantages associated with online tax filing and they are:

• In case you are e-filing your tax then you will get an extra time span of 3 months, extending the deadline to 31st January 2012.
• Tax of the concerned person is automatically calculated.
• The person gets online acknowledgement immediately.
• Processing of tax return gets faster when filed online. Thus, the concerned person gets the owed money back more quickly than that of the case of paper filing.

For more information please visit: http://nds.coi.gov.uk/clientmicrosite/Content/Detail.aspx?ClientId=257&NewsAreaId=2&ReleaseID=421367&SubjectId=36