UK Tax Groups Urge Leniency For Strike Affected Taxpayers

by Robert Lee, Tax-News.com, London

22 October 2009

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

CIOT President Andrew Hubbard and ATT President David Stedman have written jointly to the head of HM Revenue and Customs (HMRC), Dave Hartnett, regarding the effect of the industrial action on the October 31 deadline. They have asked him urgently to 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 GBP100 late filing penalty on them.

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 canceled. That is welcome." However, he added: "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."

The UK Communications Workers Union began a two-day strike on October 22, and at the time of writing the union is expected to announce more dates for industrial action. In a news release issued ahead of the strike action, HMRC urged taxpayers who fear that their paper tax return will not reach its destination before the deadline to hand deliver their returns to the nearest tax office or file electronically – online tax returns do not have to be filed until January 31, 2010. Agents were also advised to hand deliver their clients' tax returns or file them online. However, HMRC's online filing software does not cover everyone: in particular, it is not available for partnership or trust returns, which have to be filed using commercial software.

Certain other tax returns, such as some value-added tax returns and corporation tax returns, may also have a deadline on or around October 31 and may equally be affected by industrial action.

"If you still plan to post your self assessment tax return, please make sure you allow plenty of time for it to reach HM Revenue & Customs before the October 31 deadline. It's your responsibility to make sure that your return is received on time," the department warned.

HMRC said that if paper returns are delivered by hand on Monday, November 2, "normal arrangements will apply" and taxpayers will not receive an automatic fine.

"The regional postal strikes earlier this year led to some letters being delayed by weeks," noted Stedman. "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."

HMRC Guidance on possible grounds for "reasonable excuse" when appealing against a penalty for a late return states: "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."

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