With the postal system struggling to cope with strikes and just
a few days to go before the deadline for filing paper tax returns,
PKF Accountants & business advisers is warning individuals that
putting your return in the post box will not guarantee that you
escape the £100 late filing penalty.
Simon Littlejohns, tax partner at PKF in Birmingham, said:
"Those who choose to file paper tax returns for 2008/09 by the end
of October need to get to work quickly or risk a £100 penalty
if their return is received late. It is never advisable to leave
filing your return to the last minute, but this is particularly so
at the moment with the postal strike - further action is possible
and there is a backlog of post in many sorting offices."
HM Revenue & Customs (HMRC) has announced that individuals
can deliver their paper tax returns to any tax office in person, up
to the close of business on Monday November 2 without facing a
penalty. However, as many HMRC offices are currently dealing with a
six-week, or more, backlog of post, there is a danger that a return
handed in or put through the letter box of a tax office that is not
your own, will not be processed correctly or on time. Some HMRC
offices don't have letter boxes so it is not possible to hand
deliver at the last moment when they are shut - and most will be
closed on October 31 as it falls on a Saturday.
Simon Littlejohns added: "HMRC officers are instructed not to
give receipts for returns delivered by hand, so if you do get
charged a penalty by mistake, it will be difficult to prove that
you delivered the return on time."
With postal returns, the Revenue will require evidence that the
sender has tried to get the return in on time if you are appealing
against a penalty.
"Sending via special or recorded delivery is a good idea, but
there seem to be significant delays in larger towns or cities for
signed for items at the moment. Of course, one answer is to get
online and file by internet before January 31 2010. HMRC prefers
taxpayers to file online, but in some cases and for some types of
taxpayer it is just not possible - even if individuals or their
advisers would like to. In light of the combination of ongoing
postal disruption and backlog of post in Revenue offices, a strong
case can be made for extending the deadline for paper returns this
year by a month, to November 30."
Some practical tips to help those who are filing by paper return
are:
1. Start now by getting all your papers together for the 2008/09
tax return.
2. You can use estimated figures if you don't have all your
income details, but you must show that a figure is estimated and
confirm the actual figure to HMRC as soon as it is available.
3. Allocate quality time for doing the return - it is hard
enough to fill in a tax return at the best of times, but doing it
while tired or distracted makes mistakes more likely.
4. Send your return by courier or guaranteed next day special
delivery to your own tax office - this will cost more, but
you will have proof of delivery.
5. Finally, remember that it is not possible to avoid a penalty
by filing an online tax return on time after a late paper tax
return has been submitted.