HMRC calls an end to 'grace' period

Date: 18th June 2010

Small business owners and UK contractors could be encouraged to seek specialist accounting advice in order to ensure their tax returns are filed in time following an announcement from HM Revenue & Customs (HMRC).

The department has confirmed that as of March 31st next year the Extra Statutory Concession (ESC) B46 will no longer apply.

Under the terms of ESC B46, which was introduced in 1995, businesses and contractors could avoid penalties for late filing of tax returns if HMRC received the documentation by the last working day within seven days of the deadline.

However, with the introduction of online filing and the end of paper filing, the department has decided to withdraw the concession, which accounted for occurrences like postal delays.

HMRC explained: "Any customers filing a return late will, as now, be able to request us to remove any penalty, if they believe they had a reasonable excuse for the delay in filing. We will consider every case on its own merits."

Posted by Emma Clarke