HM Revenue and Customs have announced plans to scrap the seven-day ‘grace’ period for filing company tax returns and employers end-of-year returns affecting contractors working through their limited company. From March 31st 2011, these returns must be submitted to HMRC by the required dates.
The seven day ‘grace’ period meant that HMRC did not issue penalties for late filing of Company Tax returns or employers’ and contractors’ (Construction Industry Scheme) end-of-year returns, provided they were received by the last working day within seven days of the filing date.
April, 2011 also sees HMRC insisting Company Tax returns for accounting periods ending after 31 March 2010 to be filed online. HMRC will no longer accept paper returns from the majority of its customers and all P35 and P14 forms already have to be filed online.
As they are moving to online filing rather than accepting paper documents, the 7 day grace period for postal delays is no longer necessary. There is now no excuse for filing any documents late to HMRC, whether you are a sole trader or a limited company contractor.
