Friday 10th October 2008 Blog

New Tax Return Deadline

 
Halloween is particularly scary this year as it brings a new Tax Return deadline. If your clients plan to complete their self-assessment tax return on paper, their signed tax form must be with HMRC by midnight on 31 October 2008. If they are going to complete the form online, or have asked you to submit it online for them, they (or you) have another three months to 31 January 2009 to do this.

What happens if they miss the 31 October deadline and submit their paper return after this date? If they pay all the tax they owe for 2007/08 by 31 January 2009, they will not have to pay a penalty. The HMRC computer system may issue a penalty, but this should be reduced to nil where they can show they have paid all their tax on time. If HMRC owe them a tax repayment for 2007/08, they cannot be fined for submitting a late tax return. Although of-course they won't get their tax repayment until they submit their tax return.

If they try to use the HMRC free software to complete their return online, but something goes wrong with the system so their return does not get through, they do have a reasonable excuse. In this case they have no choice but to submit a paper tax return instead. When the HMRC computer spews out a penalty they should appeal and enclose proof that they tried to submit online but the system failed.

Posted by: Bookcert Mentoring Team

Friday 10th October 2008

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