Basis period reform and late filing penalties

HMRC’s Stakeholder Digest (January 2025) confirms that there will be no late filing penalties for anyone still waiting for HMRC to provide an overlap relief figure for basis period reform on 31 January 2025. If taxpayers have applied on or before the filing deadline of 31 January and have not received a response from HMRC they have until 28 February 2025 to file their return without incurring a late filing penalty. HMRC state that a provisional estimated figure should be entered if the actual figure is not known. Once taxpayers have their final overlap relief figure they should amend their return. Interest will still accrue from 1 February 2025 on outstanding amounts of tax.

The January digest also includes the following updates and reminders:

• taxpayers have until 5 April 2025 to fill gaps in their NI record dating back to 6 April 2006. After this date payments...