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HM Revenue and Customs Brief 24/10

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Issued 2 June 2010

Extra Statutory Concession (ESC) B46 - automatic penalties for late company and employers’ and contractors’ end-of-year returns

Purpose of this brief

This Revenue & Customs brief announces that ESC B46 will come to an end on 31 March 2011. Customers submitting Company Tax returns and employers’ end-of-year returns after this date must make sure the returns are submitted to us by the required dates.

Readership:

All those required to file Company Tax returns, and Pay As You Earn (PAYE) end-of-year returns (forms P35 and P14).

Background:

ESC B46 was introduced in 1995. Under this concession, we will not issue penalties for late filing of Company Tax returns or employers’ and contractors’ (Construction Industry Scheme) end-of-year returns, provided they are received by the last working day within seven days of the filing date. The ESC ensured that penalties would not be charged when customers had taken all reasonable steps to file the returns on time, but were prevented from doing so, for example due to postal delays.

Online filing

From 1 April 2011, Company Tax returns for accounting periods ending after 31 March 2010 must be filed online. All forms P35 and P14 must already be filed online, and we will no longer accept paper returns from the majority of customers. Contractors are no longer required to file end-of-year Construction Industry Scheme returns. ESC B46 has therefore become redundant because the possible causes of late filing it was intended to address can no longer arise.

Therefore, ESC B46 will come to an end on 31 March 2011. Customers submitting Company Tax returns and employers' end-of-year returns after this date must make sure the returns are submitted to us by the required dates.

Any customers filing a return late will, as now, be able to request us to remove any penalty, if they believe they had a reasonable excuse for the delay in filing. We will consider every case on its own merits. Customers can also appeal against the penalty to a Tribunal.


About the Author

© Crown Copyright 2010.

A licence is needed to reproduce this article and has been republished for educational / informational purposes only. Article reproduced by permission of HM Revenue & Customs under the terms of a Click-Use Licence. Tax briefs are updated regularly and may be out of date at time of reading.



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Article Published/Sorted/Amended on Scopulus 2010-06-18 15:21:13 in Tax Articles

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