Egg Tax

Millions of small businesses face chaos as HMRC has chosen to enact a computer upgrade over the Easter weekend – the busiest time of the financial year. The shut down, which lasts until Wednesday (11 April), threatens to throw into chaos plans for the self-employed, business owners and accountants.

Many would have been hoping to file end-of-year tax and payroll returns at the last minute but find themselves locked out and unable to access tax files online. The decision could have also hit millions of small businesses desperate to pay VAT bills by the April 7 deadline.

With fines for late payment of VAT being levied by HMRC’s automated system, many could face fines and repeat offenders could see fines as high as £5,000. The IT shutdown is the latest in a series of bad decisions by HMRC. When it activated a new computer system in 2009 it led to millions of incorrect tax codes being sent out.

Gareth Osborne said: “Many firms will be exasperated by HMRC’s decision to do a major upgrade to its computer systems at such an important time – but then Government always seems to do road repairs when the roads are at their busiest.”

“Our advice, if this shutdown has caused filling problems, is that companies should email and write to HMRC stressing their attempt to comply and immediately complete the action when normal services are resumed. We can only hope HMRC predicted the ensuing assault by angry users.”

“It should be stressed that HM Revenue & Customs (HMRC) often shuts down its computer systems over the long Easter weekend; unnoticed by most people, but this year, it has happened to fall at the end of the tax year.”.

A spokesman for HMRC has called its upgrade ‘routine’ and said it was necessary in order to upgrade all the new tax codes and systems. Gareth said: "I must remember to quote that back at them if we are ever late filling."

APA