750,000 Late Tax Returns

HMRC confirms that a record 10.7 million self-assessment tax returns were submitted before deadline on 31 January 2018.

The telling figure is that a record 30,348 returns were filed in the last hour i.e. 11.00pm to 11.59pm and more importantly 745,588 returns due were not filed.   At £100 penalty for each late self-assessment return, that’s 745,588 X £100 = £74,558,800.  That’s £75m in the first wave of late filing penalties alone.  Give to the N.H.S...?

Penalties for late tax returns

• an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time
• after 3 months, additional daily penalties of £10 per day, up to a maximum of £900
• after 6 months, a further penalty of 5% of the tax due or £300, whichever is greater
• after 12 months, another 5% or £300 charge, whichever is greater
• There are also additional penalties for paying late of 5% of the tax unpaid at 30 days, 6 months and 12 months.

The Late Fine Billions

If 745,588 fails to submit late return at 6mths, that total possible fines of £1,000 each.  745,588 X £1,000 = £745,588,000.  £3/4 billion!

9.9m Online Returns

Of the 10.7m self-assessment returns filed for the year, 9.9m were filed online.  That is a fantastic result for HMRC and proves that more of us everyday are getting familiar with online transactions.

Still not filed?

HMRC has urged anyone that missed the deadline to submit their return as soon as possible or call their helpline on 0300 200 3310.