HMRC has confirmed that no penalties will be issued to Barclays customers who were unable to pay their self-assessment tax bills due to a significant IT outage last week. The disruption, which began on Friday, coincided with the January 31 deadline for tax returns, leaving many customers unable to access their accounts or make necessary payments.
The issue, which affected hundreds of Barclays account holders, has been ongoing for several days, with some customers still unable to access their funds.
Barclays Apologises for Ongoing It Issues
The outage has caused considerable inconvenience, particularly for those with urgent financial obligations. Some Barclays customers expressed their frustration online, with one stating that the outage had prevented them from making a food purchase for their family.
Barclays has since apologised for the technical problems, assuring customers that no one would be financially disadvantaged as a result. According to the bank, customers can still use their cards and withdraw cash, but they have been advised not to attempt making any payments until the issue is resolved.
Hmrc’s Response to Customers
In light of the outage, HMRC clarified that customers who were unable to meet the deadline for self-assessment tax returns due to the Barclays banking issues would not face penalties. A spokesperson for HMRC emphasised that while late payment penalties do not apply until March 1, those affected should contact HMRC to explain their situation. This decision provides some relief, as it assures taxpayers that they will not be penalised for circumstances beyond their control.
Self-Assessment Tax Return Deadline and Penalties
For those who miss the self-assessment filing deadline without a reasonable excuse, HMRC typically issues a £100 penalty. However, the government body has acknowledged that external factors, such as banking outages, may be deemed reasonable excuses for delays. HMRC has emphasised that each case will be considered on its merits, ensuring that taxpayers are treated fairly.
Here’s a summary of the penalties and dates to keep in mind:
| Action | Deadline | Penalty |
|---|---|---|
| Self-assessment tax return filing | January 31 | £100 if filed up to three months late |
| Late payment penalty | March 1 (beginning) | Applied if payment is not made by March 1 |
| Reasonable excuse for late payments | Ongoing (case-by-case) | Potential to avoid penalty with evidence |
The Barclays IT outage has caused significant disruptions for many customers, particularly for those attempting to meet self-assessment tax return deadlines. HMRC’s response ensures that affected individuals will not face penalties due to the banking issues, with the late payment penalty not applying until March 1.
Barclays has issued apologies and continues to work on resolving the technical problems, while reassuring customers that no one will be financially disadvantaged due to the outage.
