HMRC hands late filers a reprieve

Date: 7th October 2008

Self-assessors who fail to submit their paper tax-return before the October 31st deadline may not necessarily face a £100 penalty.

For those who miss the October deadline, but are unable to file their return online, a 'reasonable excuse claim' is now an option.

In previous years, those who missed the deadline were handed a fine automatically before giving the opportunity to claim the money back. Now, a reasonable excuse claim can be made before any penalty is issued.

Tina Riches, CIOT technical director, said: "The CIOT have worked with HMRC to ensure a smooth process for tax advisers, the taxpayer and HMRC.

"We are very pleased that they have taken the time to consult with the professional bodies and understood the problems in this transitional year. The outcome is a positive result for all concerned."

Without a valid excuse, those who miss the deadline still face a £100 penalty.

For paper self-assessment tax returns, the deadline is October 31st, whereas if you are planning to file online, it is January 31st 2009.