HMRC offers concession to late paper filers

7 October 2008

HM Revenue and Customs (HMRC) has agreed that taxpayers who are late in filing paper tax returns by the new cut-off date of 31 October can submit an advance ‘reasonable excuse’ claim.

The change applies to taxpayers who are late in filing their paper returns through no fault of their own.

Under the old regime, late filing attracted an automatic penalty, after which taxpayers could claim a reasonable excuse for the late submission (such as a software failure).

Now it is possible to submit an advance reasonable excuse claim with the tax return itself. If HMRC accepts the excuse, no penalty notice will be issued.

Tina Riches, the Chartered Institute of Taxation’s technical director, said: “The CIOT have worked with HMRC to ensure a smooth process for tax advisers, the taxpayer and HMRC. We are very pleased that they have taken the time to consult with the professional bodies and understood the problems in this transitional year. The outcome is a positive result for all concerned.”