This week, HM Revenue & Customs (HMRC) is sending penalty letters to around half a million people who have not yet sent their 2010/11 tax returns. These will amount to £1,200 or more – £900 in daily penalties for non-filing and a £300 late-filing fee, or five per cent of tax due, depending which is higher.
However, HMRC stressed that the number of outstanding returns has almost halved, down to 5.9 per cent from 10.7 per cent at the same time last year.
The tax office spin is that: “We want the returns, not the penalties. This year, half a million more people have filed their return – which means we are issuing 44 per cent fewer penalties. But, despite several reminders, nearly six per cent of people have not sent their 2010/11 tax returns to us and they’ll be getting a penalty.”
However, the cynics amongst us may think that the government is rubbing its hands at the thought of £600m of windfall income!
Most of our clients have avoided these penalties with our help. A very small number will be getting these penalties, despite numerous reminders being sent to them by ourselves as well as the tax office. If you have received a penalty then please contact us immediately and we would be pleased to help you bring your affairs up-to-date.
If you think that you have a “reasonable” excuse, or that you should not have been issued with a tax return, then please contact us for assistance. Unfortunately, if you do fall within the self-assessment system and have not made your return on time then these penalties are probably payable. Our only advice can be to submit your return urgently to avoid the next round of penalties!