Trader Support Service Flyers
The usual filing deadline for an Interest Restriction Return (IRR) is 12 months from the end of the period of account. HMRC do not have discretion to provide any extension to the statutory filing deadline, however, no late filing penalty will be chargeable where the reporting company has a reasonable excuse for missing the deadline, and the IRR is filed within a reasonable time after the reasonable excuse ends.
HMRC have been asked about how we will interpret reasonable excuse where the filing deadline for an IRR is the same as those for company tax returns, and companies within the CIR group have requested deferrals to CT late filing penalties. An IRR may be filed using estimated figures, so reporting companies should continue to file the IRR on time where possible. In order to reduce the administrative burden on groups, HMRC will accept that where the majority of companies within a CIR group have obtained a deferral to late filing penalties for their company tax returns, if the IRR is filed by the same agreed date, there is a reasonable excuse for the late filing.
If a reporting company is unable to file the IRR by the deadline, they should contact their Customer Compliance Manager (CCM) if they have one. If the group does not have a CCM, and they consider that they have a reasonable excuse for filing the IRR late, they should include this information when they file the IRR. HMRC can then take account of this before any late filing penalty is issued, reducing the administrative burden for both parties. HMRC will have regard to all relevant facts and circumstances when considering if there is a reasonable excuse for late filing of the IRR.
A news item about CT late filing penalties can be found here.