The taxman’s push to get more people to file their self-assessment returns online rather than by post appears to have won an unlikely ally in the Royal Mail.
Although HMRC has had to say it will waiver fines for tax returns received late due to the postal strike, the fear of still being fined may compel customers to finally make the jump.
“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,” said Paul Spindler, partner at Kingston Smith.
“However, they might be tempted to take the plunge knowing that they could 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, which a proof of post certificate can show, could be left to work out their own tax bills by the payment date of January 31.
This date is also the deadline for filing self-assessment returns online, but because tax is worked out automatically as the form is completed, taxpayers will know what they owe or are owed straight away.
To register, first-time users of the e-facility will need to register for SA and government services, and then activate their account with a unique code, which will be sent to their home address.
“Some individuals may be concerned that their activation code will be delayed in the post,” Mr Spindler said. “But with the online filing date still three months away, there will be no reason to panic.”
Meanwhile, HMRC has been asked to treat all paper returns that miss the October deadline by a week as having been sent on time, and therefore immune to the £100 late filing penalty.
The request, by the Chartered Institute of Taxation, was pitched as the “sensible” and “less bureaucratic” option in wake of the chaos that is likely to hit the postal service on Thursday and Friday.
HMRC is yet to respond to the plea, but the department has said taxpayers who deliver their returns by hand on Monday November 2nd will not have to pay the £100 penalty.
Editorial image Adrian Short
Oct 22, 2009
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