Self-assessment tax return deadline extended for some

HMRC has confirmed that certain taxpayers will be eligible for an extension to the self-assessment deadline.

HM Revenue & Customs has confirmed that the 31st January deadline for people to file their online self-assessment tax return could be extended to 15th February, in certain cases.

Tax experts, Tolley, published an automated email it received from HMRC on its website, highlighting the rarely publicised caveat.

The email states: "Certain taxpayers can avoid a late filing penalty, provided they submit their 2012/13 Tax Returns via the HMRC software by 15th February 2014.”

Who is eligible?

The extended deadline applies to taxpayers who between midnight on 21st January and midnight on 31st January 2014 either enrolled for the self-assessment online service or requested a replacement user ID or password.

When people register to file an online self-assessment tax return for the first time, HMRC sends their user ID and password via post. An activation code is also sent through the post separately.

HMRC allows for taxpayers that may be caught out thinking they can file their return with just their user ID and password, when the activation code is also necessary. However, the deadline extension only applies to those who have already registered for self-assessment and have a unique taxpayer reference (UTR).

Patrick O’Brien from HMRC said: “We don't want to charge penalties where our process takes time to send information in the post to enable you to use the online service - the most important thing is we get the returns in.

“If someone has registered for our Online Service or existing customers have lost their User ID or password and realise they have left it too late we will allow a bit of extra time for this information to be received.”

Earlier this week Chas Roy-Chowdhury, head of taxation at the Association of Chartered Certified Accountants (ACCA), called on HMRC to "do the right thing" and postpone the self-assessment deadline in order to help the thousands of first-time filers.

He said there was an increase in self-employed people and new tax rules around Child Benefit meant there were more newcomers that might be struggling with the process.

Commenting on the latest developments Roy-Chowdhury said he’s never seen HMRC grant a two-week extension, though HMRC insisted this has been an 'easement' for some time.

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Avoiding a penalty

A total of 10.5 million self-assessment tax returns are expected for the 2012-2013 tax year. But it has been reported that 1.5 million have yet to be filed. Those that are late are hit with an instant £100 penalty.

Since HMRC’s systems are unlikely to be able to distinguish between those that are eligible for the extension and those that are not, you may still receive a late-filing penalty notice.

Tolley advises that anyone that meets the criteria for the extended deadline and files by 15th February, but receives a late-filing penalty, to appeal within 30 days.

However, the deadline for paying any tax you owe still stands and must be made by 31st January 2014. If you don't you will be charged interest. After 30 days you will be charged 5% of the tax you owe. The same charge applies if you are six months late and if you are 12 months late.

Finding help

If you need help filling out your self-assessment form before the deadline read Tips for filing your self-assessment tax return at the last minute.

And to make sure you don’t make any mistakes in the rush read How to get your online self-assessment tax return right.

The HMRC website also has tools and information to help you work out what you owe.

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More on tax:

The best places to keep your tax bill money

Working from home: how to get a tax rebate

“I had a run-in with a cow”: the strangest reasons for late tax returns