Self Assessment - last minute filers could face IT problems

Most of us know that failure to submit your self assessment return by 31st January 2008 will result in a £100 fine. However, the ACCA is warning against late filing, as computer glitches in past years have resulted in some self-assessors getting fined even though they submitted their returns in on-time.

The global accountancy body is concerned that some self-assessors who submit their forms on-line and on-time could still receive a £100 penalty notice, as has happened in previous years. This often happens because the taxpayer is filing so close to the deadline that errors creep into the system, especially when it comes to correctly recording the receipt of the tax return. Taxpayers need to be aware of this and appeal against any errors.

Chas Roy-Chowdhury, head of tax at ACCA, said:

“There have been occasions, recently reported on Radio 4’s You & Yours, where taxpayers have used the on-line filing system for other tax forms, and made their submission by the deadline and then apparently fallen foul of the deadline due to IT systems issues at HMRC, who have still issued fines. If the problem lies with HMRC’s computer systems, then these self-assessment taxpayers should be given the benefit of the doubt.”

“The perennial question at this time of year is whether those with legitimate reasons for filing late - those with complex tax issues, or those waiting for information from overseas – should be penalised for submitting their forms late? While ACCA believes it is important for HMRC to target persistent late filers, it also needs to be lenient with those who have genuine reasons for late filing, especially when HMRC’s computer systems are at fault.”

Key tax deadline dates in 2008 are:

• 31 January 2008: If a Tax Return was received by 31 October 2007, then this is the deadline date for submitting completed 2006-07 Tax Return.
• 1 February 2008: If a Tax Return was received by 31 October 2007, then a penalty of £100 will be charged if HMRC has not received a tax return by this date.
• 6 April 2008: This is the start of the new tax year. A Tax Return or Notice to Complete a Tax Return (SA316) will be sent out to all those meeting the criteria to get a Tax Return each year.

Roy-Chowdhury concluded: “The most important thing for tax self-assessors - whether on-line or paper based - is to communicate with HMRC if they think there are problems. Call HMRC’s helpline – get a name, date and time when the call was made. And most importantly, make sure all tax-related paperwork and e-mails are filed safely. Good record keeping is essential, should anything go wrong and if an appeal is needed.”