Keep Tax Return Records to Ensure You Avoid Fines
The 31st January deadline for self assessment tax returns is closing
quickly,
but even
if you
file on
time you
should
take
steps to
ensure
you are
not
mistakenly
fined
because
of
delays
or
errors.
You also
need to
send in
any tax
payable
at the
same
time.
The warnings come from
the Association of Chartered Certified
Accountants (ACCA), who are concerned that
in the past self-assessors who have filed
on-time using the online service have still
received a £100 penalty notice.
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.”
Roy-Chowdhury added: “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.”
Find out more on taxation issues in our
Accounting section.
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