Extension to 31 January tax deadline: proceed with care
Comments from Richard Mannion, national tax director at Smith & Williamson:
“An HMRC spokesman has been reported as saying that, because of the strike action planned by HMRC staff on 31 January, no penalties will be charged for the late filing of 2010/11 tax returns provided they are submitted electronically before midnight on 2nd February. At this stage it is not clear whether this applies to all taxpayers or whether it only applies to those taxpayers who can demonstrate that they needed to clarify a matter with HMRC but were unable to contact the call centre on 31 January."
“However because of a decision made by the Special Commissioners in a tax case heard in 1999, the deadline for avoiding a penalty for filing a self assessment return late has in practice always been 1 February. In other words it appears that for this year only that deadline has been extended by a further 24 hours."
“This extension beyond the normal filing date of 31 January should be used with care because it only applies for the purposes of the late filing penalty and the time limit for HMRC to open an enquiry would be extended by 3 months. Furthermore where a claim is being made to carry-back gift aid relief, the deadline remains 31 January.”
After making these comments HMRC provided further clarification:
- It seems that to all intents and purposes a tax return submitted electronically on 1 or 2 February 2012 will be treated as though it was received on 31 January 2012;
- Any claim made in an online return on 1 or 2 February will be treated as made in a return received on 31 January.
HMRC’s statistics show that last year 100,000 taxpayers called HMRC on 31 January for help with their tax return and so it is good that HMRC have recognised that the strike of tax office staff planned for 31 January this year could have caused significant problems. However HMRC’s communications regarding the concession left a lot to be desired, thereby losing them the opportunity to get credit for what should have been a good news story.
Richard Mannion, Director, National tax
T: 020 7131 4252
E: Richard Mannion
Press queries:
Kate Harrison / Ravina Mather 020 7131 4228 / 4358
Disclaimer
By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details correct at time of writing.
Smith & Williamson Limited
Regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities. A member of Nexia International
