HMRC announces late filing penalty relaxation
Following the recent self-assessment deadline, we look into the easement for late filing penalties that has been announced by HMRC for taxpayers who had requested their overlap profits information but had not received a response before 31 January 2025.
In September 2023, HMRC launched a new online form (known as a G-form) to enable tax practitioners to request overlap profits information about their clients, allowing them to calculate the 2023/24 taxable profit or loss for their clients affected by basis period reform.
We have received positive feedback from members about the G-form on gov.uk, which became popular ahead of the 31 January 2025 self-assessment deadline. In order to provide information in sufficient time to submit returns before the deadline, HMRC set a deadline of 31 December 2024, but all requests would be processed as quickly as possible.
Although the submission deadline has now passed, the G-form is still active for the coming weeks. If you have submitted a request, you can find an estimated date of response by using the “Check when you can expect a reply from HMRC”.
Easement re late filing penalty
In a welcome development, HMRC has advised that there will be an easement for the late filing penalty for taxpayers. This will apply when a request for overlap relief profits information was submitted on or before 31 January 2025 using the G-form, but HMRC hadn’t responded before the filing deadline. Those taxpayers will have until 28 February 2025 to submit their return without incurring a late filing penalty.
HMRC’s advice remains that a provisional estimated figure should be entered if the actual overlap profit figure is not known. The return can then be amended to show final figures at a later date.
The easement only applies to the late filing penalty and does not affect the liability to pay tax payments due by 31 January 2025. Interest will be charged on any interest payments outstanding from 1 February 2025 as would normally be the case for late payments.
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We also welcome your views, which help inform our work on consultations or other tax-related matters. ICAS responds to many tax calls for evidence and consultations, as well as producing tax policy papers and reports. We also regularly attend meetings with HMRC at which service levels, delays and other issues are discussed, and we raise problems being encountered by members.
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