HMRC update: 335,000 taxpayers urged to act swiftly to avoid fines as crucial deadline looms - 'Don't get caught out'

Some 335,000 people filing paper self-assessment tax returns have been reminded about the deadline on October 31.

Alastair Douglas, CEO of TotallyMoney said: "For many, submitting tax returns online by January the 31st 2025 will not only be the easier option, but the one which buys the most time.

"However, more than 300,000 people are quickly headed toward this month's 31st October paper tax return deadline."

While most can file online by January 31, 2025, some individuals must submit paper forms. This includes those reporting foreign income and gains or trust and estate information, as these sections are not available online.

Money is usually deducted automatically from people's wages, pensions and savings. However, people and businesses with extra income must report it in a tax return.

The tax body has clarified that customers don’t need to call HMRC and can instead visit GOV.UK to check if they need to send a Self Assessment tax return. If they no longer need to send one, they can use the online service to tell HMRC without the need to speak to an advisor.

HMRC has outlined several categories of individuals who may need to complete a tax return.

This includes self-employed persons earning over £1,000 gross income, or those earning up to £1,000 who wish to pay Class 2 NICs voluntarily.

Partners in business partnerships and individuals with a total taxable income exceeding £150,000 are also required to file. Vinted and eBay sellers have been warned not to miss the fast-approaching HMRC deadline or they could face fines of £100.

Additionally, those who have received untaxed income, including pension income over £2,500, or income over £1,000 from online trading or services, must submit a return.

The requirement extends to individuals subject to the High Income Child Benefit charge and those who have received substantial interest from banks, building societies, or investments.

Douglas said: "With fines of £100 in place for late submissions of up to three months, it’s important not to get caught out. And if you need to fill in the foreign income and gains, or the trust and estate pages — you’ll be required to do it with a paper form as they’re not available to complete online."

Myrtle Lloyd, HMRC's chief customer officer, also emphasised the importance of accuracy. He said: "We want to help customers get their tax returns right first time which is why we have produced a wealth of online resources and guidance to support them every step of the way."

To assist taxpayers, HMRC provides a variety of online resources and YouTube videos, particularly helpful for first-time filers.

The tax body encourages early submission to avoid last-minute stress and gain clarity on owed amounts sooner. For those unsure about their self-assessment status, HMRC's online service allows individuals to check if they need to file a return without contacting an advisor directly.

For those with special circumstances or vulnerabilities, HMRC offers additional support. Douglas advised: "For some with vulnerabilities or in special circumstances, physical forms might also be easier.

"This can include having dyslexia, autism, or a similar condition, sensory disabilities, or other health conditions such as stress and depression."

HMRC's extra support team is available to assist these individuals. They provide guidance through video appointments or phone calls.

To access this service, taxpayers should mention their situation when contacting the HMRC helpline or webchat.

Importantly, individuals can designate someone to deal with HMRC on their behalf. This doesn't have to be a professional; it can be a trusted friend or family member. Douglas added: "There are forms available so don't hesitate to get support if you need it."

HMRC urges taxpayers to be vigilant against scams. Criminals often use emails, phone calls, and texts to attempt to extract personal and financial information.

Before sharing any sensitive details, individuals are advised to consult the 'HMRC tax scams' page on GOV.UK for guidance on identifying fraudulent communications.

Those submitting self-assessments should never share their HMRC login details with anyone, as this could lead to theft or unauthorised benefit claims.