This Is Guernsey

By Tom Edwards

ISLANDERS with UK-sourced income could face penalties if they do not get their personal paper tax returns in by 31 October.

Fran Snoding (pictured), director of Fortis Reads Private Clients, said it was essential to take notice of changes to filing dates outlined in the Finance Act 2007.

‘The legislation introduced new deadlines for those returns filed in the traditional paper form and failure to comply could result in automatic and potentially daily charges,’ he said.

‘Guernsey residents are just as exposed to the penalties if they receive UK income of any sort, for instance rental income on a property or through UK-based bonds and pensions.’

For the UK tax year which ended on 5 April, individuals need to file their paper return by 31 October.

However, in a bid to encourage more people to complete returns online, HM Revenue and Customs has given an extended deadline of 31 January for those who want to take advantage of the electronic filing system.

‘It should be noted that HM Revenue and Customs has the power to prescribe what denotes electronic filing, which in essence is “a return that is capable of passing through the electronic gateway”,’ said Mr Snoding.

Before the Finance Act 2007, people had from April, the end of the UK tax year, until the end of the following January to complete and file their tax form.

‘Islanders with UK source income really need to take steps to complete their tax returns as a matter of urgency, or contact their accountant to do so,’ said Mr Snoding.

‘Although it is possible to use estimates on your return and correct these later, it could potentially leave individuals open to an inquiry from HM Revenue and Customs.

‘Should the inquiry prove figures to be incorrect and tax is paid late, interest and surcharges may be due.’

Article posted on 2nd October, 2008 - 2.30pm