HM Revenue and Customs
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Tax help for those affected by floods

Tax help for those affected by floods

HM REVENUE AND CUSTOMS News Release (NAT 51/07) issued by The Government News Network on 25 July 2007

The Chancellor of the Exchequer, Alistair Darling, today announced that HM Revenue and Customs (HMRC) will introduce a series of measures for individuals and businesses affected by the recent severe flooding.

The Government will bring forward legislation in next year's Finance Bill which will allow the Commissioners of HM Revenue and Customs to waive interest and surcharges on tax paid late due to the floods.

Financial Secretary to the Treasury and Minister for HMRC, Jane Kennedy said,

"I want to ensure that people affected by the flooding do not have to worry about tax or their tax credit award at this difficult time. Where individuals or businesses are affected by the flooding, I would ask them to get in touch with HMRC who will be able to offer practical help. I hope that, by offering this help now and the reassurance that HMRC will back-date their help, we can ease some of the anxiety that is affecting so many people and business."

Paul Gray, Chairman of HMRC added,

"We know that the recent floods have affected a large number of our customers and we want to make it easy for them to meet their obligations to HMRC and receive their tax credits. Our staff are standing by ready to help."

HMRC will be able to:

* defer collection of taxes and duties, or agreeing instalment arrangements where customers are unable to pay as a result of severe hardship

* waive interest, surcharges and penalties for the period during which collection of tax or duty is deferred

* introduce practical arrangements where individuals and businesses have lost records in the flooding

* suspend debt collection proceedings

* defer compliance checks and investigations

HMRC will not charge penalties where we are satisfied that customers have missed deadlines as a result of the flooding.

HMRC ask that people contact the department if the flooding has made it difficult for them to send in their tax credit renewals on time or if they have a change of circumstances to notify. Similarly customers having difficulty paying their taxes or duties, or sending in tax returns or other information as a result of the flooding should also get in touch as soon as possible.

The Government propose to make this legislation retrospective from 26th July. The Commissioners will exercise their discretionary power not to collect such interest and surcharges in the interim.


Website http://www.hmrc.gov.uk

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