Freelancers dodge tax penalties due to postal strike

Due to the latest round of postal strikes, HMRC have announced that they will not issue fines for the late submission of self assessment tax returns, provided you post your return before 31st October.

The news comes just days after two professional tax bodes called on the government not to issue fines in the wake of the latest postal disruption.

Freelancers working as sole traders or through their own limited company are advised to consider submitting their return online this year, as the deadline for these submissions is not until January 31st 2010.

Those who deliver their assessment by hand to a post office on November 2nd will not face a fine for late submittal.

In a note on the tax authority's website, the body said: "Agents are advised to file their customers' tax returns online. If they do want to send them on paper they should either post them as soon as possible or take them to their nearest HMRC Office."

The news provider added that it is not clear whether the fines will be levied and then returned or not applied in the first place.

If you choose to deliver your self assessment by hand, your HMRC office will still accept returns on November 2nd, but anything received after this date will be subject to a penalty.

In a note on HMRC's website, it advises tax agents and accountants to file their customers' returns online.

"If they do want to send them on paper they should either post them as soon as possible or take them to their nearest HMRC Office. You should consider filing online as you'll have longer to file your tax return - until 31 January 2010."