The end of the trail

Much has been said about Making Tax Digital (MTD) and business owners are well along the road to completely paper-free tax returns. However, the latest step is that HMRC are pulling the plug on paper self-assessment tax returns.

We're not talking about a huge percentage of the population, only 385,000 people submitted paper returns for the last tax year. HMRC have announced that they will be writing to 135,000 taxpayers to advise them that they will need to file online.

These people are the under 70s who are still filing a paper return. People who are unable to file online, either because they don't have access to a computer or have a disability that prevents them from doing so can apply for a paper form by calling the HMRC self-assessment form order number 0300 200 3610.

People who are over 70 and have never filed a digital tax return will still receive their form by post. However, once they've done it digitally once, that will be the expectation forthwith.

Ask your family

If you have members of your family who have always submitted their tax return by picking up a pen and completing the boxes then popping it in the post, you will need to educate them.

Not receiving a form is not an excuse for not completing a self-assessment return.

You might need to support anyone who isn't used to doing an online return to ensure they know what they're doing.

The only other alternative for people who don't know where to start with a digital submission is for them to consult an accountant – with the costs that involves.

Are you exempt?

There are some exemptions:

  • The over 70s (as above)
  • People who are not digitally capable – such as people who have disabilities
  • MPs
  • Senior members of the armed forces
  • People employed by the secret services

These latter three categories are exempted from online filing for security reasons – we're not sure what that says about the security of the HMRC system! Their returns are managed by a special department within HMRC.

Although MTD has now been delayed until 2026, HMRC are still working towards a paperless system. This is just the latest step along the way.

If you didn't know you could still submit paper returns – that's good as it means you're ahead of the game!