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The Chancellor of the Exchequer, Alistair Darling, has announced that HMRC are to introduce a series of measures for individuals and businesses affected by the recent severe flooding.

Under the new proposals, the Government will include legislation in next year's Finance Bill which will allow HMRC to waive interest and surcharges on tax paid late due to the floods.

Commenting on the proposals, 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."

Broadly, the new legislation, wihc will apply retrospectively from 26 July 2007, will enable HMRC to:

• defer collection of taxes and duties, or agree 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; and
• 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.

Link

Tax help for those affected by floods