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29 October 2008 HMRC relaxes self assessment penalty rules

Individuals wishing to submit their self assessment tax return by hand this October have been given some latitude over the late filing penalty.

A new deadline of 31 October has now been set for filing 2007/08 paper returns – the most significant change since the self assessment tax system was introduced more than 10 years ago.

However, HM Revenue and Customs (HMRC) has said it will not impose a £100 fine if forms are delivered in person before its offices open on 4 November.

‘It is a little more complicated this year because of the closure of our offices at 5.00pm and no opening over the weekend,’ a HMRC spokesman told the BBC.

‘Hopefully this year have spelled it out in a much clearer way, so that there can be no doubt as to when a penalty will be charged or when an inquiry can be opened.’

Despite the apparent lenience, the tax body is urging small businesses to file their return as soon as possible – a message it has been communicating through its new advertising campaign fronted by Moira Stuart.

Online returns, meanwhile, may be submitted up until 31 January 2009, after which the £100 fine will be levied.

We can help you prepare your tax return for submission to HMRC – please contact us for assistance.