HMRC to Fine Over 1 Million for Missing Self-Assessment Deadline
Resulting in potential penalties of £110 million ...
Posted by Roger Eddowes on 12/02/2024 @ 8:00AM
HMRC has announced that over 1 million people are at risk of facing fines for missing the self-assessment tax deadline. These individuals failed to file their tax returns by January the 31st, resulting in potential penalties of £110 million ...
Regardless of the reason, HMRC does not take late self-assessment tax returns lightly!
The self-assessment tax return is a way for individuals to report their income and any other relevant financial information to HMRC. This includes income from self-employment, rental properties, and investments. The deadline for filing these returns is January 31st, following the end of the tax year on April 5th.
"HMRC has a strict policy when it comes to late tax returns!"
Individuals who miss the deadline are automatically fined £100, even if they have no tax to pay or have already paid the tax due. This penalty increases the longer the return remains outstanding, with additional fines of £10 per day after three months, and a further £300 or 5% of the tax due (whichever is higher) after six months.
The fines can quickly add up, making it crucial for taxpayers to file their self-assessment tax returns on time. However, despite HMRC's efforts to remind individuals of the deadline, many still fail to meet it. In fact, over 1 million people missed the January the 31st deadline last year, resulting in £93 million in fines and it's even more this year.
There are several reasons why individuals may miss the self-assessment tax deadline. For some, it may be a simple case of forgetfulness or being too busy with other commitments. Others may struggle with the complexity of the tax system and require more time to gather all the necessary information.
"Regardless of the reason, HMRC does not take late tax returns lightly!"
In addition to the financial penalties, late tax returns can also lead to other consequences. For example, individuals who miss the deadline may face interest charges on any tax they owe, as well as potential legal action from HMRC. In extreme cases, persistent failure to file tax returns can even result in imprisonment.
To avoid these consequences, taxpayers are reminded to file their self-assessment tax returns on time. It is crucial to keep track of the deadline and start gathering all necessary information well in advance. This includes any relevant documents, such as P60s, P45s, and bank statements.
For those who are struggling to complete their tax returns, HMRC offers support and guidance. The tax authority has a dedicated helpline for self-assessment queries and also provides online resources and webinars to help individuals understand the tax system better.
In addition, HMRC has an online service called 'Time to Pay,' which allows taxpayers to spread the cost of their tax bill over 12 months. This service is available to those who owe up to £30,000 in tax and have no outstanding tax returns or other debts with HMRC.
"It is crucial to file tax returns on time to avoid hefty penalties and other consequences!"
Taxpayers are encouraged to seek support and guidance from HMRC if needed and take advantage of services like 'Time to Pay' to manage their tax bills effectively. As, as always, the support of an accountant such as myself will go a long way to ensuring you file your self-assessment tax returns on time in future.
Until next time ...
ROGER EDDOWES Business Godparent
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about getting your self-assessment tax returns filed on time, it may be a great idea to call me on 01908 774320 and let's see how I can help you.
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Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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