Taxpayers are being reminded that the date for submitting a paper self-assessment tax return is looming.

The cut-off point for paper returns is 31 October.

Last year, some 2,467,000 people submitted self-assessment tax returns in paper format.

Of those, 2,143,000 (87 per cent) managed to meet the deadline. Late returns could mean a £100 penalty.

However, HM Revenue and Customs (HMRC) is encouraging taxpayers to consider online filing.

Stephen Banyard, director of HMRC’s business customer unit, said: “The other option would be to file online – three quarters of self assessment filers already do so – where you get three months longer to file.

“Online filing has other advantages too: your tax is calculated automatically; you get an immediate online acknowledgement once you’ve filed; and it’s processed faster, so any money you’re owed is repaid more quickly. So, it is really worth considering.”