Strike on 31 Jan 'reasonable excuse' for late SA filing

HMRC said it will waive £100 late filing penalties for those unable to access the Self Assessment helpline on 31 January due to the department's expected call centre strike.

The tax department expects 600,000 people to submit their tax returns on the final deadline day and 15% of those typically call HMRC with a query about their return on the same day.

However, with a large majority of the department’s call centre staff expected to strike on deadline day, HMRC will expunge any penalty for those who write a letter citing the helpline strike as the reason for their delayed return.

A HMRC spokesperson said “We’re hoping that the strike will be resolved but there’s a good chance it may not be so we may not be able to provide the level of service we would like on the deadline day.

“Because these people are trying to do the right thing and because we can’t provide them with the kind of support we should, we won’t ask these people to pay a penalty. They’ll have a reasonable excuse under the existing provisions.”

Over the past year, there has been a rash of tribunal cases around reasonable excuse, with some high profile victories for taxpayers hit with multiple late filing penalties.  (one of which HMRC is appealing). In Dental IT v HMRC [TC01002], the taxpayer won their appeal because of misleading advice from VAT helpline staff, but we are not aware of examples where not getting through to the helpline was accepted as an excuse. In the circumstances, the department is taking a commendably commonsense approach, but taxpayers and advisers need to know about the strike concession and ask for it to take advantage.
 
Comments
johnjenkins's picture

HMRC - commonsense

johnjenkins | | Permalink

don't make me laugh. The only reason why they are waiving the penalties is because they know they would lose in tribunal. Anyhow what gives HMRC the right to "waive" penalties just when they feel like it. If penalties are law then HMRC don't have that right. If not then surely we can also say "we decided not to work that day because it was raining" so we have a reasonable excuse. Time HMRC were taken to task - mind you any more strikes and they might just as well pack it all up and let us REALLY self assess.

HMRC

HAXEYJULES | | Permalink

Well it seems as if HMRC are a law unto themselves. When it comes to penalties here's a good one.

Client has massive tax refund, based on an assessment from 2006-2007 paye, actually more than orginally paid in tax. Client contacts us as obviously a mistake, and doesn't bank the cheque.  We contact HMRC regarding the gross error, turns out the figures have been transposed from one system to another.  They have now amended theses figures so it created a large outstanding balance, again WRONG...!  The client has quite rightly refused to pay this error, so they are now threatening penalties if it remains outstanding.  Is this department run by complete idiots?

All HMRC seem to be doing during this recession is being as unreasonable as possible, imposing as many penalites as they can, and making tax inspections time consuming and difficult!

Instead of being glad the population is not sitting on benefits, but getting up and starting a business, they seem determined to scrounge every last penny from the self employed.

Good to know they are behind kick starting the ecomony...!

 

Natalie Brandweiner's picture

David Guake comments

Natalie Brandweiner | | Permalink

David Gauke, exchequer secretary to the Treasury, said: “This strike could have caused thousands of people to incur fines, so I am pleased that HMRC has taken this common sense approach. The government does not want anyone trying to file their tax return on time to be unfairly penalised because they were unable to get through for help and advice on the 31st.”

Please clarify

mail.taxperfect... | | Permalink

Does this mean that there will be a £NIL penalty, or NO penalty at all (there is a difference)?

johnjenkins's picture

and

johnjenkins | | Permalink

how long is the non-penalty regime to last for. Just one day I would presume.

Just been announced deadline

0098087 | | Permalink

Just been announced deadline put back to February 2nd. Its on Sky News

nigel's picture

600,000?

nigel | | Permalink

Is that right?

spikecat's picture

Just heard that too - but    1 thanks

spikecat | | Permalink

Just heard that too - but nothing on the revenue web site - but thats no surprise !! That would be a help with my stragglers !

Natalie Brandweiner's picture

HMRC update

Natalie Brandweiner | | Permalink

HMRC has confirmed that any returns submitted on the 1 or 2 of February will recieve no fines whatsoever. All returns will be subject to the same rules that apply on 31 January. 

 
 
 

 

johnjenkins's picture

If Accountants had a mass walkout on 31st Jan

johnjenkins | | Permalink

would our clients be able to claim that as reasonable excuse?

Just don't tell the clients!    1 thanks

martin.curtis | | Permalink

A two day extension has got to be good news but those who are going to leave things to the very last minute will continue to do so. I know I'm still going to be filing Returns for the late stragglers at silly o'clock on the 2nd. (and those clients ring me for advice not the HMRC call centres!)

 

Helpline can't help

leon0001 | | Permalink

I have just spoken to the agents' SA dedicated line. The call centre staff have no knowledge of the alleged 2 day filing penalty and interest waiver. Has anyone seen anything direct from HMRC confirming this ?

Surprised    1 thanks

arnold28 | | Permalink

With the huge amount HMRC stands to collect in penalties from all those who file late, surely it is better for them to give in to their staff's demands and keep the original deadline?

oh well    1 thanks

lstaccy | | Permalink

there was a twitter post that prompted me to search to see why and if true.  I booked a flight early hours this morning to Amsterdam as a reward for getting past Jan - going on Feb 1st for the day - so if my stragglers are now thinking great 2 extra days they can think again. & Already got work booked in for Feb 2nd.  Gotta aim for 31 Jan anyway now!

Nichola Ross Martin's picture

Please clarify    1 thanks

Nichola Ross Martin | | Permalink

It is worth pointing out that we have conflicting reports of what is going on. According to the BBC no fines will be sent out for returns received late on 1-2 Feb. According to the above it sounds like you may be fined but you will have a reasonable excuse. I think the former sounds more plausible because HMRC are trying to avoid loads of appeals clogging up the systems.

More funny is the fact we now see that HMRC can after all change its computers to a penalty date forwards or backwards (as we all knew it could). Which all brings me to You Charter - anyone remember that?

HMRC says:

"We will:
• act within the law and our published guidance"

It would be kind of good to have some guidance PUBLISHED by HMRC on the exact position here given that this story is now two days old.

Virtual Tax Support for accountants: www.rossmartin.co.uk

Sorry - was going to be cynical but found this on their site

Marion Hayes | | Permalink

26 January 2011

Self Assessment deadline

To make sure our customers are not disadvantaged if they cannot get through to HMRC's call centres on 31 January, we will not impose any late filing penalties for people who file their Self Assessment returns on 1 and 2 February.

The SA deadline remains midnight on 31 January. But HMRC will treat all returns that come in by midnight on 2 February as though they were submitted by 31 January. No customer will have to pay interest on payments due on 31 January that are paid on 1 or 2 February.

Acting Director General Personal Tax, Stephen Banyard, said: “We’ve always been very clear that we want the returns – not the penalties. For that reason, we don’t want anyone who can’t get through for help and advice on 31 January to be disadvantaged in any way.”  

Nichola Ross Martin's picture

The missing link to Marion's post

Nichola Ross Martin | | Permalink

Not posted in What's new, Agent News, Service issues, etc...but in its press section on 26 Jan 2011.

 

http://www.hmrc.gov.uk/press/index.htm

Thanks Nicola

Marion Hayes | | Permalink

Didn't realise I hadn't posted the link