Postal strike to cost UK Treasury £25m in lost tax

The tax authorities in the UK have been forced to waive fines for returns filed late as a result of the postal strike, potentially costing the government £25m in lost revenue, reports The Daily Telegraph. The article continues:

Anyone who files their tax returns by post, rather than the internet, has until the end of the month to hand in their forms or risk a £100 fine. There are 2.4 million expected to file their tax by post this year.

Each year about 10% hand in their tax late and are fined, raising valuable funds for the Treasury.

However, HM Revenue and Customs said anyone who can prove they posted their forms in good time but missed the deadline because of the postal strike will be able to successfully appeal their fine.

A spokesman said: “Tax returns that miss the 31 October deadline purely due to the circumstances of the strike will almost certainly not attract a penalty.”

Accountants welcomed the move but warned there could be thousands of consumers “trying their luck” and using the postal strike as an excuse to hand in their tax forms late. They also said many could spend months trying to prove they had actually sent the forms.

Mike Warburton, tax partner at Grant Thornton, said: “It is going to be very irritating for consumers to prove they have sent their tax forms. The only foolproof way, I recommend, is to visit your local tax office in person and ask a tax officer to sign a receipt. Though, I appreciate this is not practical for many individuals.”