IT contractors who have been taking advantage of HMRC’s seven day grace period need to be aware that the concession is being axed as from March 31, 2011.
This could lead to an increase in the number of small business owners and freelancers turning to an IT contractor accountant for advice in completing their tax returns.
HMRC introduced the Extra Statutory Concession B46 in 1995 and employers and contractors were not penalised provided their company tax returns were received within 7 working days of the filing date.
Once the ESC B46 comes to an end, returns must be filed online by the specified date otherwise contractors will automatically face penalty charges. These can only be removed if a special request, detailing the reason for the delay, is made to HMRC. A spokesman from the Revenue said that every case will be considered on its own merits.
HMRC has decided to withdraw the concession because all returns are now filed online and so postal delays no longer affect filing dates.
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