Last Monday we highlighted that the Institute would be contacting HMRC to flag our concerns about the 2023/24 self-assessment online filing deadline in the context of the recent exceptional weather. We asked HMRC to take a pragmatic approach to this issue given the particular impact this has had on taxpayers, businesses, and agents in Northern Ireland and their ability to file returns on time. HMRC contacted us last Thursday with an update which confirms that whilst a blanket easement is not possible, HMRC will take a sympathetic approach towards those filing after the deadline on a case-by-case basis. HMRC has also advised that if a return is late because a taxpayer applied before 31 January 2025 for confirmation of available overlap relief in the context of basis period reform, they have until 28 February 2025 to file their return without incurring a late filing penalty. More information on this is available in the most recent Stakeholder Digest.
The Institute recommends that if a return is filed late because of the recent weather, the additional information box should be completed to outline the specific reason(s) why and claim reasonable excuse. Further guidance is available in the Stakeholder Digest on delayed overlap relief requests and what action to take when filing a return late.
The full update from HMRC on the impact of the exceptional weather is as follows:
“Thank you for raising the possible impacts of the recent severe weather across parts of Ireland and the UK on people and businesses in the run up to the Self-Assessment deadline.
Undoubtedly, this would have impacted some individuals, businesses and agents still trying to submit SA returns. Given the timing of these very recent events and the fact that areas most impacted are difficult to identify, we are not in a position to invoke a unilateral easement. We will however take a sympathetic approach towards those filing after the deadline on a case by case basis.
We don’t want to collect penalties – our aim is to support taxpayers to get their tax right and avoid fines. We will cancel penalties where taxpayers can provide a reasonable excuse within 30 days of the penalty being issued, in which case no financial fine is levied. We will of course take into account the impact of adverse weather when it comes to such appeals. We will also take steps to ensure that teams reviewing forthcoming appeals are alert to the detail of the guidance and will apply it empathetically, appropriately and consistently.
Please be reassured that HMRC will be delivering a fair, even-handed and consistent approach across everyone impacted in whatever capacity.”
By way of reminder, those without a reasonable excuse will be issued with a penalty including:
an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time,
after 3 months, additional daily penalties of £10 per day, up to a maximum of £900,
after 6 months, a further penalty of 5 percent of the tax due or £300, whichever is greater, and
after 12 months, another 5 percent or £300, whichever is greater.
31 January 2025 was also the due date for paying any remaining income tax and Class 4 national insurance contributions for 2023/24 and is also the first self-assessment payment on account deadline for 2024/25.