Late tax returns total £85million in fines

Companies and individuals face penalties worth £85 million from HMRC after failing to submit their self-assessment tax returns on time.

Despite HMRC extending its January 31st deadline for 2010-2011 self-assessment returns, some 850,000 failed to submit and will receive a £100 late-filing penalty.

This represents a 550,000 fall in the number missing the deadline last year, which shows stronger signs of discipline amongst those registered for self-assessment. However, HMRC still finds itself entitled to a preliminary minimum of £85 million in fines.

HMRC has appealed to firms and self-employed individuals who have not yet sent returns to do so promptly to avoid risking further penalties. Any returns that have not been submitted after three months of the initial deadline will incur further penalties of £10 per day.

An additional new penalty for late payment is a charge of 5% of the tax unpaid after 30 days, which can be repeated after six months and again after one year.

The organisation points out that anybody with reasonable grounds for appeal – which might include personal reasons, such as bereavements, or administrative reasons, such as a delay on the part of HMRC – can do so by writing by the end of March.

Alternatively, anybody receiving a penalty who believes that they should not be included in self-assessment can call their helpline to discuss this and potentially have the fine revoked.

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Mark Hornby