HMRC extends no-penalty period for self assessment over strike

HM Revenue & Customs has said that, as a result of a planned strike by contact centre staff on 31 January, no one who files self-assessment returns online on 1 or 2 February will be liable for a late-return penalty.

HM Revenue & Customs has said that, as a result of a planned strike by contact centre staff on 31 January, no one who files self-assessment returns online on 1 or 2 February will be liable for a late-return penalty.

The move means that the deadline for online self-assessment returns is effectively extended until 2 February.

The Public and Commercial Services (PCS) union, which represents thousands of members of HMRC staff, has called a 24-hour strike for 31 January in protest against what it called the “privatisation” of HMRC contact centres.

The strike action would mean that many people who wanted to file their self-assessment returns, and who tried to call with questions they need answered to do that, would not be able to get through.

Derek Allen, tax director at ICAS, the professional body of Chartered Accountants, said:  “The planned strike on Tuesday could cause thousands of people to miss the deadline and incur fines. Last year, 31 January was the busiest day for self-assessment returns, with a record 572,455 returns filed online.  Approximately 600,000 taxpayers are expected to file returns online on 31 January this year.

“The welcome extension will prevent individuals being unfairly penalised because they were unable to get through for help and advice.  However, this situation reinforces the need for taxpayers to file self-assessments as early as possible.”

Previously, not everyone who filed after 31 January got a penalty, as none was due if no tax was liable to be paid.

This year, for the first time, a £100 penalty is payable, whether or not tax is liable. After three months an additional fine of £10 a day is added for each day overdue, up to a maximum of £900.  Tougher fines are added if passing the six month or one year mark; the larger of £300 or five per cent of the tax due.

“The numbers missing the self-assessment deadline has soared by 70 per cent over the last six years to 1.4 million last January,” said Allen.  “The penalties are HMRC’s way of trying to minimise the number of late payments. It is vital that people are aware of these penalties as they also have the potential to reduce the amount some taxpayers would otherwise receive as tax rebates.  This is particularly relevant for self-employed workers in the construction sector.”

A previous report from unbiased.co.uk shows that the taxman was given an extra £368million last year as penalties for late returns, miscalculations and surcharges on late payment of tax.