Late Tax Returns Mean HMRC Fines For Many

29 April 2013

HM Revenue and Customs is about to make hundreds of thousands of people pay for not completing their tax returns on time

 

More than half a million taxpayers are set to be hit with daily fines after failing to file their tax returns, Sky News has learned.

An estimated 650,000 to 850,000 self-assessment taxpayers still have not given HM Revenue and Customs (HMRC) annual returns for the 2011-12 financial year.

The Tax Office cut-off date for the returns was January 31.

HMRC sent out automatic £100 penalties to around 850,000 people by February 20, boosting tax coffers by some £85m.

The defaulting taxpayers were then given three months to file their accounts.

However, it is believed that hundreds of thousands have still to complete their forms.

On May 1, three months after the January deadline, a new daily fine will be levied on those who have not processed the form.

In addition to the earlier £100 penalty, they will be hit with the daily £10 fine, up to a maximum of £900.

An HMRC spokesman told Sky News: "Anyone who hasn't yet sent their 2011-12 tax return to HMRC will have already incurred a £100 late-filing penalty.

"Non-filers have to file to avoid further penalties or contact us to ask to be taken out of self-assessment, and provided they meet the criteria, we will take them out of SA and cull any penalties incurred."

Those who allow the filing delay to extend beyond six months are handed another £300 fine or 5% of the tax due, whichever is higher.

HMRC is then entitled to give those who fail to file within 12 months a tax demand up to 100% of the tax due instead.

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