HMRC relaxes self assessment penalty rules

Individuals wishing to submit their self assessment tax return by hand this October have been given some latitude over the late filing penalty.

 

A new deadline of 31 October has now been set for filing 2007/08 paper returns – the most significant change since the self assessment tax system was introduced more than 10 years ago.

However, HM Revenue and Customs (HMRC) has said it will not impose a £100 fine if forms are delivered in person before its offices open on 4 November.

‘It is a little more complicated this year because of the closure of our offices at 5.00pm and no opening over the weekend,’ a HMRC spokesman told the BBC.

‘Hopefully this year have spelled it out in a much clearer way, so that there can be no doubt as to when a penalty will be charged or when an inquiry can be opened.’

Despite the apparent lenience, the tax body is urging small businesses to file their return as soon as possible – a message it has been communicating through its new advertising campaign fronted by Moira Stuart.

Online returns, meanwhile, may be submitted up until 31 January 2009, after which the £100 fine will be levied.

We can help you prepare your tax return for submission to HMRC – please contact us for assistance.