HMRC Issues Record Number of Fines for Late Tax Returns
New figures have shown that HM Revenue & Customs (HMRC) has issues a record number of fines for late tax returns. HMRC has fined 1.5 million for filing late self-assessment returns since January, up 8% from the previous year and 56% from five years ago.
Under the new penalty regime introduced this year, taxpayers can be fined £100 if they submit a day late, with £10 a day added after three months up to a maximum of £900. A further £300 fine or 5% of the tax due will be added after six months and the one year mark. Fines are levied even where no tax is due and the fine will apply next year even when HMRC owes the taxpayer a refund.
If you have a query about the new penalty regime, how to avoid penalties and how best to prepare for self assessment, please contact Helen Mackenzie or a member our tax team on 0131 558 5800 or email mail@chiene.co.uk