Missed The Tax Return Deadline - Don't Despair!

Bedminster taxpayers who have not already registered with HM Revenue & Customs (HMRC) to file their tax returns online are unlikely to get the passwords in time to file their tax return by the 31 January deadline.

 

The warning comes from Tony Moorby at the Bristol office of PKF Accountants & business advisers who says that new users of the online filing system must have registered with HMRC by 21 January in order to receive their activation code by post which will allow them to get onto the system and file their return before 31 January.

 

Although there may be postal delays, HMRC will not regard failing to file your return because you did not get the activation code as a reasonable excuse when it comes to appealing against the £100 penalty.

 

Tony said: “If you have not yet registered with HMRC you may not be able to file your return by 31 January, but this does not always mean that you will have to pay the automatic £100 late filing penalty.

 

“Although the rules will be tougher next year, for 2008/09 tax returns, the £100 penalty is only charged if the amount of tax outstanding at 31 January 2010 is £100 or more. Where the tax outstanding is less, say £60, the late filing penalty is reduced to that amount, so you would be asked to pay £120 in total.

 

“Therefore, provided you make a payment to HMRC by 31 January of at least the full amount of the tax still unpaid for 2008/09, overpay to be on the safe side, you can still avoid paying a penalty.

 

“But you must then arrange to file your return as soon as possible after 31 January. Although not a penalty issue, don’t forget that in some circumstances you may also have to make a payment on account of 50% of the tax liability for the 2009/10 tax year by 31 January 2010 to avoid interest charges arising.”