SMALL businesses are being urged not to miss the October tax return deadline as plans for a new points-based penalty system are debated.

Shane Horsell who owns TaxAssist Accountants in Swindon and Royal Wootton Bassett said: “Business owners who miss the October 31 deadline for filing paper self-assessment tax returns will face a penalty of £100 even if they are only one day late in filing.

“The fine applies to late tax returns - whether or not there is any tax to pay or you pay tax due on time.

“The deadline for firms and taxpayers who choose to file their tax returns on paper is 31 October, while those who file online have until January 31, 2017.

After the initial £100 fine for late filing, penalties spiral in line with how late the tax returns are and, after a 12-month delay, hit a minimum of £1,600.

In some cases, business owners might be due a tax refund so the sooner they file, the sooner that money can be working for them in their bank accounts.

“If taxpayers or business owners that have been filing their own paper tax returns miss the October 31 deadline, the best advice is to file their return online by January 31.

“At TaxAssist Accountants we can do this for you, as well as check your figures are accurate and that you have claimed all the expenses and allowances you are entitled to.

“Small businesses might have heard about plans from HM Revenue and Customs to move to a points-based regime for failure to submit tax returns on time, similar to the speeding points system for drivers.

“Each failure would attract points and penalties with charges when they reach a certain level. But this is only at the consultation stage so the old rules still apply.”