Recent flooding has disrupted many businesses and taxpayers alike, and in some cases this means that tax returns and payments have been made late.
In general, one can avoid tax penalties and interest if you have a reasonable excuse to prove that you were prevented from fulfilling your obligations under the taxes acts. The problem is often that the description of what is and what is not a reasonable excuse can vary from case to case, and it can be very time consuming examining the facts. In view of the knock on effects of the wettest summer on record and resulting flooding, the Treasury has made the following announcement:
"The Government will bring forward retrospective legislation in next year's Finance Bill to allow HMRC to waive interest and surcharges on tax paid late due to the floods."