FSB: Don’t let small businesses chew over tax deadline

Small businesses which file their self-assessment tax forms in late during these testing times must be given a break by HM Revenues and Customs (HMRC), the Federation of Small Businesses (FSB) urged today.

The FSB is asking HMRC to be more understanding when businesses send in their reasons for late filing. While the dog chewing computer wires is not a reasonable excuse, HMRC should accept sickness on the part of entrepreneurs during this crucial week as a reasonable excuse.

The FSB called for an extra two days by which small businesses will have to file their self-assessment tax form online from January 31 to February 2 given that the deadline falls on a Saturday. HMRC must also ensure its site does not crash with the final rush of filed tax returns.

The deadline was extended last year as thousands of people were unable to log onto the website on deadline day as the system crashed. The FSB wants to ensure that last year’s mistakes will not be repeated, leaving small businesses paying the price – a £100 fine. HMRC must continue to be flexible with small firms which are putting all their energy into surviving the downturn.

Federation of Small Businesses National Chairman, John Wright, said:

“The self-assessment tax return will be an unnecessary burden on our nation’s small businesses if we see a system failure like last year. The FSB urges the HMRC to take a soft-touch to small firms in these difficult times.

“For small businesses, the self-assessment tax return is a very important task and in these tough times there are many reasons why they will need up until the deadline day to file their return. We urge HMRC to ensure they have the right resources in place to deal with the influx.”

Notes to Editors

Examples of reasons for late filing accepted by HMRC include: your completed return was lost or delayed; you lost your financial records through fire, flood or theft; serious illness or bereavement; and computer breakdown.

Examples of reasons for late filing rejected by HMRC include: I’ve been sick for the last week; I was on holiday on deadline day; and the dog chewed my computer wires.

Self-assessment tax return deadline is January 31.

In the Pre Budget Report, the Government announced deferrals on tax payments including VAT and National Insurance and other payments to HM Revenue and Customs. For more information go to http://www.hmrc.gov.uk/index.htm.

The FSB is the UK’s leading business organisation with over 215,000 members. It exists to protect and promote the interests of the self-employed, and all those who run their own business. More information is available at www.fsb.org.uk.

Contacts:

Stephen Alambritis: 020 7592 8112 / 07788 422155
Sophie Kummer: 020 7592 8128 / 07917 628 998
Prue Watson: 020 7592 8121 / 07825 125695
Marc Shoffman: 020 7592 8113 / 07595 067068

For regional FSB contacts please go to www.fsb.org.uk/regions