HMRC to waive fines for postal strike victims

The sound of 85,000 temps stampeding towards 30,000 roles at the Royal Mail suggests that the disruption to the postal service on Thursday and Friday is on most people's radar.



However in a rare display of leniency, HM Revenue & Customs (HMRC) said it was gearing up to waive fines for self-assessment tax forms filed late due to the postal strike.



Anyone who can prove they posted their tax return for 2008-09 in good time but still missed the deadline as a result of the strike will be able to successfully appeal their £100 penalty.



Usually the Revenue is only sympathetic to self-assessment taxpayers, who must make their return by 31st October, if their return is late due to unforeseeable circumstances.



But HMRC now says "circumstances of the [postal] strike" that cause returns to miss the deadline will almost certainly be exempt from paying a penalty, the Daily Telegraph reported.



The move has been welcomed by accountants, yet one chartered firm told the paper that it foresees taxpayers 'trying their luck' by using the postal strike as an excuse to file late.



Grant Thornton also said taxpayers genuinely affected by the strike may have to devote hours to prove they filed in good time, particularly if they don't obtain a "proof of posting" certificate from their post office.



Positively for advisors, the potential for disruption to the postal service lends new credit to their age-old advice about filing self-assessment returns : 'don't leave it to the last.'



The Institute of Chartered Accountants in England Wales said: "There is a tradition for some to put off doing their tax return until the bitter end, but this will only cause more stress than is necessary.



"Also, with the threat of a postal strike it is a good idea to aim to get your paper return in ahead of time so you won't risk the £100 penalty."



Although not practical for everyone, taxpayers can also boost their chance of HMRC not thinking that they are feigning being a strike victim by also personally obtaining a receipt from their local tax office.