HRMC will cancel late filing penalties for soldiers

British armed forces personnel in active service who have failed to file their tax return in time will have their penalties cancelled as a ‘Reasonable Excuse’ if they get in touch with HMRC.

As discussed on BBC Money Box, soldiers serving in Afghanistan will still face penalties if they fail to file by the 31 January deadline, but there will the chance to appeal. 

Paul Lewis said: "We’ve been talking to HM Revenue & Customs all week about this, trying to clarify it. They refused to be interviewed to come and explain it themselves. And then this morning, at half-past eleven, just over half an hour ago, they told us, “If our people in the armed forces let us know they are in Afghanistan, HMRC will immediately cancel the penalty.” Now that’s in sharp contrast with the policy set out in the letter to our listener. ''.

An HMRC spokesperson also told AccountingWEB: “For a service person who is serving with the military in Afghanistan, we appreciate that they have higher priorities than filling out their tax return. They’re in a fairly unique position, a combat position, and obviously that has to come first for them, and we completely understand and support that.

Continued...

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Comments

Better advice

Trevor Scott | | Permalink

In respect of soldiers, if a soldier went to Afghanistan in August then why didn’t they submit the return beforehand? Should they get off from a penalty? I don’t think so.

At this stage, and if a genuine reason why someone couldn’t submit a return, better advice would be to send HMRC an email/letter by recorded delivery stating that you are unable to complete your return by 31st, state the reason why you can’t comply, also state when you can expect to be able to complete the return.

HMRC may well wonder, quite rightly, even if a good reason then why didn’t they just submit a return with some estimated figures and state on the return when a final return can be expected to be filed.

Also remember that it is a duty to pay tax as well as submit return so also make the payment on account, otherwise the reason for a late return may not be believed; that the person is just trying to weasel out of  penalty.

 

Why?

hally993 | | Permalink

Why?

How long does the average tour of duty last?

As Trevor points out, surely they will have been in the UK since 5th April 2011 and if they are unable to meet their legal obligation of submitting their tax return before the filing deadline with is over 300 days after the tax year end, then they should appoint somebody to do it on their behalf.

What about people who work for other employers who have been working away for long periods of time.

I realise that the armed forces are a great attribute to Britain and that we are generally talking about some very brave people who are prepared to put their lives down on the line for our great country but it is a career choice (National Service was done away with in the 1970s) and they are well paid.

The BBC's obsession with ass-licking the military really drives me insane!

Have a heart guys!    2 thanks

taxassist | | Permalink

I can't believe what I'm reading in the comments.  Soldiers should be allowed some time to file their tax returns without penalty. You must consider what they go through out there and just how much they are away from the UK. 

Yes they do have plenty of time but they aren't accountants and they don't always realise they can file their return from April.  I never know why HMRC (might want to do a spellcheck on the headline guys!) don't advertise heavily from April onwards to get the tax return done early.  I guess it's linked with the £90m they expect to earn in penalties.

arthvirg230's picture

just ridiculous....

arthvirg230 | | Permalink

Why should they get beneficial treatment? the world has gone mad - don't they get enough with subsidised private school fees, discounts on new cars and generous pensions when they leave?

Just because they might be in Iraq or Afghanistan - so what?  Its their job - thats what they signed up for  - thats what they get paid for . Time to get in the real world boys.

...    1 thanks

Trevor Scott | | Permalink

Having been on a couple of RAF/USAF/other bases in the UK I know that there are people available on the bases to help people with tax returns, they charge nothing but appreciate thanks and the occasional chocolate biscuit.

 

Ignorance is bliss eh?!    2 thanks

Helen Crowley | | Permalink

Some of the earlier comments are from those that don't realise that some of these guys were also away in April, they are back for a short time and often then have to go back out on tour again. When they are back they don't get to sit about at home for months on end, they then have to undergo training for their next tour assuming of course that they haven't been made redundant! A tour can be 6 months long. Many have been given the false impression that all of their pay and tax is taken care of. If one was your client, never mind a relative or friend would you not be helping them to argue that they had a reasonable excuse? Why shouldn't we look after our military properly as they are prepared to look after you?

The media are in charge

The Black Knight | | Permalink

have a bleet on the T.V. that's its unfair and you can do anything.

 

unbelievable    3 thanks

ianhend | | Permalink

Some of the comments up-thread are frankly unbelievable.  We sit in our little offices filling in Tax Returns, and at the same time brave people - our fellow countrymen and women -are being shot at in 50C heat by people who hate us.  And some people seem to think that their Tax Return should be uppermost in their minds as the bullets fly past them?   The real disgrace would be if the penalties were not waived.

And (while my rant switch is still on full power) I must have missed the BBC  ' ass licking the military' - something I have never seen in my lifetime and an action I would regard - in that golden diplomatic phrase - as being redolent with improbability .  Gee, what planet are some of you guys on?

 

PS responses in green ink will be discarded unread........       

Instead of exagerating ....

Trevor Scott | | Permalink

.... deal with the reality that someone who has had a number of months to do their return, yet chose not to, does not have a reasonable excuse; even if they are shot at months later. 

Filing a tax return is just another legal obligation, about which anyone can obtain free help by walking into a tax office and asking someone for help filling out the form. Usually they will be helped all the way through the return by an HMRC employee who will even keep the signed return to save them a stamp. Hard eh? No! 

excuse me

The Black Knight | | Permalink

But I don't really agree with war full stop....and perhaps if we didn't support these political wars then may be my mates (brave as they are) would not be risking life and limb on a pointless objective.

Our armed forces should be used for the defence of our nation.

Perhaps if we were not wasting so much money and lives on a piece of desert we could all pay less penalties.

Many other people have issues that means their mind is not on their tax return....might even be paying their employees and their tax.

And after all that we are expected to cough up for charity because the government doesn't care about these troops (their own employees) either.