HMRC has announced that late filing penalties will be waived for anyone who files their tax returns by 2 February. A similar grace period is in place for any tax payments which are also due by 31 January.

When the Public and Commercial Services Union confirmed that its one-day strike in HMRC call centres was going ahead on 31 January – the deadline for filing tax returns – it followed that tens of thousands of taxpayers would struggle to file their tax returns in time. HMRC expected around 90,000 calls on the last day of filing, and that only about 20% of those calls would be answered in the event the strike proceeded.

Filing by the deadline is important, because there are automatic penalties for late filing – this year, for the first time, the penalties are charged even if there is no tax due.

HMRC has just announced that anyone who files their tax returns by midnight 2 February will not receive a ‘late filing penalty’.

This is a complete change from the previous official line, which was that anyone who struggled to speak to a call centre operator on the 31 January would have to claim a “reasonable excuse,” that the industrial action prevented them from filing their return.

“This is primarily of benefit to taxpayers that don’t have an adviser, and have to rely on HM Revenue & Customs to help them to navigate the complex forms”, said Colin Tice, Cassons’ Tax Partner.

“We are pleased that HMRC has recognised the difficulties that a strike would have caused and have allowed a couple of days’ grace so that people can get the help they need. This was always going to be a difficult year for people filing tax returns, particularly with the new, more stringent penalty regime. It’s good that they have also allowed more time for people to pay their tax, as of course you generally need to finish your tax return, in order to work out how much tax is owed.”

Colin appeared on Radio 5 live this lunchtime (Thursday) to advise on the new rules for filing tax returns and the problems the strike would cause for people struggling to file their tax returns by 31 January. Perhaps someone from HMRC was listening?