Landlord Tax Return Paper Filing Deadline

The tax filing deadline for landlords who file paper self-assessment returns is fast approaching.

Fewer taxpayers are opting to file their returns on paper by the deadline at midnight on October 31, says HM Revenue and Customs.

Since 2020-21, the flood of paper has dropped from 468,667 returns to 312,000 last year.

Although HMRC still posts reminders and paper returns to taxpayers who cannot file online for good reason, automatic reminders were scrapped years ago.

This leaves most paper filers to download a print version of the self-assessment forms from the HMRC website or call 0300 200 3310 for a mail-out of the forms.

How to extend your tax deadline by a year

If you file a paper self-assessment return, you are not alone - around 3 per cent did so in 2023-24.

Filing early instead of waiting for the online January 31 deadline has some pros and cons for landlord taxpayers.

The October 31 paper tax return deadline means taxpayers must have all their figures at hand, as they have six months to file instead of nine months for the online deadline.

But here's a trick - if the six-month lead-in is too tight to collect all the data needed for a filing, send in the return with estimated figures. Then, taxpayers can correct a return up to 12 months after the self-assessment deadline, either online or by sending a corrected paper return.

For example, for the 2024-25 tax year, taxpayers can usually change a paper return until October 31, 2026 and an online return until January 31, 2027.

Correcting self-assessment mistakes

Send the corrected pages to the same tax office as the original paper filing, write 'Amended' on each page, and highlight the new figures.

Taxpayers do not have to explain why they make corrections within the first year after filing. However, if you miss this deadline for corrections or if you need to update an earlier tax year, you'll need to write to HMRC explaining why you need to make the changes.

Uncorrected errors can be expensive. If you rush filling ina return, the risk of errors will be made. Taxpayers who have shown reasonable care but have made a mistake on their return are not penalised.

If you haven't taken reasonable care, expect a penalty of up to 30 per cent of any extra tax due.

This rises to between 20 per cent and 70 per cent for deliberately underestimating the tax due and between 30 per cent and 100 per cent for trying to hide the tax due, which can be classed as tax evasion.

Keeping to tax deadlines

Keeping to the deadlines is complicated. The main dates are:

• April 5 - Tax year closes
• October 5 - Registering for self-assessment for taxpayers who have not filed a return before
• October 31 - Deadline for filing paper returns
• January 31 - Deadline for filing online returns and paying any tax due, including the first payment on account
• July 31 - Payment of the second payment on account

Self-assessment tax payments on account are due if a taxpayer owes tax of £1,000 or more and up to 80 per cent of the money is not collected by PAYE. Each instalment covers half of the taxpayer's bill for the current year, based on the previous year's figures.