CIOT:

CIOT: ‘Don’t fine taxpayers caught by postal strike’ urge tax bodies

CIOT: ‘Don’t fine taxpayers caught by postal strike’ urge tax bodies

The Chartered Institute of Taxation (CIOT) and Association of Taxation Technicians (ATT) are calling on the Government not to issue fines to people whose tax returns are delayed by the postal strikes and miss the 31 October paper return deadline.

CIOT President Andrew Hubbard and ATT President David Stedman have written jointly to the UK’s chief taxman, Dave Hartnett, regarding the effect of the industrial action on the 31 October deadline. They have asked him to urgently consider treating all paper returns received within a week of the deadline as if they were received on time, and hence not levy the usual £100 late filing penalty on them.

Andrew Hubbard said:

‘HMRC have said that anyone whose tax return misses the deadline due to the strike should not have to pay the hundred pound fine as they can appeal and have the penalty cancelled. That is welcome.’

However, Andrew adds, ‘Given the chaos likely to hit the postal service over the next few days it would be much more sensible, and less bureaucratic all round, simply to treat all returns which arrive up to a week late as having arrived on time.’

David Stedman said:

‘The regional postal strikes earlier this year led to some letters being delayed by weeks. I would strongly encourage anyone yet to send in their tax return to either deliver it by hand to a local tax office – and keep a note of when they delivered it – or to obtain a ‘proof of posting’ certificate from their local post office when they post it. This will enable people to prove to HMRC that they posted in good time even if the return arrives late and they need to appeal.’

For further information – George Crozier on 020 7340 0569 or email gcrozier@tax.org.uk

Notes to Editors

1) 31 October is the deadline for the filing of self-assessment paper tax returns for the 2008-09 tax year. Returns can be filed online up to 31 January 2010 using HMRC software or third party commercial software – but HMRC software does not cover everyone: in particular, it is not available for partnership or trust returns. Any partnership which misses the 31 October deadline will have to file online using commercial software, which is available from about £10, or face a late filing penalty of £100 per partner.

2) Some other tax returns, such as some VAT returns and Corporation Tax returns, may also have a deadline on or around 31 October and may equally be affected by industrial action.

3) Guidance on possible grounds for reasonable excuse when appealing against a penalty for a late return are included in HMRC’s self assessment manual, available at www.hmrc.gov.uk/manuals/sammanual/SAM61070.htm. This includes:

‘The completed return was lost or delayed in the post

The taxpayer is expected to allow sufficient time for the return to reach you. However if the return was posted in good time and an unforeseen event occurred which disrupted the normal post service and led to loss or delay of the return, for example fire or flood at the Post Office where the return was handled or prolonged industrial action by the Post Office, would be considered reasonable excuse.’

The Chartered Institute of Taxation (CIOT) is a charity and the leading professional body in the United Kingdom concerned solely with taxation. The CIOT’s primary purpose is to promote education and study of the administration and practice of taxation. One of the key aims is to achieve a better, more efficient, tax system for all affected by it – taxpayers, advisers and the authorities.

The CIOT’s comments and recommendations on tax issues are made solely in order to achieve its primary purpose: it is politically neutral in its work. The CIOT will seek to draw on its members’ experience in private practice, Government, commerce and industry and academia to argue and explain how public policy objectives (to the extent that these are clearly stated or can be discerned) can most effectively be achieved.

The CIOT’s 14,800 members have the practising title of ‘Chartered Tax Adviser’.

4) The Association of Taxation Technicians was established in 1989 to provide the ATT qualification for individuals employed in taxation in industry, commerce and the public sector, as well as those employed in professional practices. The Association currently has over 10,500 members and students and is a companion body of The Chartered Institute of Taxation.

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