The fifteen-year-old HMRC concession, ESC B46, that allowed late filing of company tax returns or employers’/contractors’ end-of-year returns, provided that they are received by the last working day within seven days of the filing date, has come to an end.
 
The concession ensured that penalties will not be charged where all reasonable steps to file the returns on time have been taken.
 
However, all forms P35 and P14 must already be filed online by the majority of businesses and contractors are no longer required to file end-of-year construction industry returns. In addition, from 1 April 2011 company tax returns for accounting periods ending after 31 March 2010 must be filed online.
 
Although ESC B46 has become redundant, coming to an end on 31 March 2011, businesses can still request HMRC to remove any penalty, if they believe they had a reasonable excuse for the delay in filing. HMRC will consider every case on its own merits and stress that customers can also appeal against the penalty to a Tribunal.

Francis Clark has offices in Exeter, Plymouth, Salisbury, Taunton, Tavistock, Torquay and Truro. Francis Clark is the winner of the ‘Auditor of the Year - Mid Tier’ in the National Financial Directors’ Excellence Awards 2011, and LexisNexis Best General Tax Practice Award 2009. More information is available by logging on at our Online Information Centre