31 October tax deadline: Postal strikes could encourage online filing

Many taxpayers fear that they will miss the 31 October deadline for filing 2008/09 self-assessment tax returns because of the ongoing strikes. HMRC has said it will waive the £100 penalty for any returns received late, but individuals will need to prove they posted their returns in plenty of time, i.e. by using recorded delivery or a similar service.

“There are a number of taxpayers who have wanted to file online but, for whatever reason, put it off – perhaps thinking it would be too complicated,” says Andrew Shaw, a tax partner at the top 20 accountancy firm. “However, they could be tempted to take the plunge knowing that they might be fined (through no fault of their own) and, more importantly, because HMRC is not obliged to calculate tax owed on paper returns filed after 31 October. This means individuals unable to prove they posted their returns in good time could be left to work out their own tax bills by the payment date of 31 January.”

The deadline for filing online self-assessment tax returns is 31 January, but because tax is worked out automatically as the form is completed, taxpayers will know what they owe or are owed straight away.

Individuals accessing HMRC’s online services for the first time will need to set themselves up as a user, which is a two-step process. First they will need to register for online government services and sign up for the self-assessment online service. Second they will need to activate their account using an activation code. This will be sent to their home address and will usually arrive within seven working days.

“Some individuals may be concerned that their activation code will be delayed in the post. But with the online filing date still three months away, there will be no reason to panic,” continues Andrew.

For more information on filing self-assessment tax returns online, visit:
http://www.hmrc.gov.uk/sa/understand-online.htm

For further information, contact:

Andrew Shaw
Tel: 020 7566 3807
Email: ashaw@kingstonsmith.co.uk

PR enquiries:

Layisha Laypang
Tel: 020 7566 3574
Email: llaypang@kingstonsmith.co.uk