New tax return penalties being sent to 0.5 million nonfilers

Posted 21/08/2012

Around half a million people who still haven’t sent their 2010/11 tax returns to HM Revenue & Customs (HMRC) will start to receive additional penalty letters from this week.

The number of outstanding returns has almost halved in 2012, down to 5.9 per cent, compared to 10.7 per cent in 2011. This means 518,000 fewer penalties are being issued. HMRC has also taken 273,000 people out of Self Assessment this year.

New penalties were introduced in April 2011 to boost the incentive to file and reduce the costs to taxpayers of chasing up missing forms. As a result, anyone who ignores their Self Assessment filing obligations is now liable to higher penalties than in previous years.

The penalties being issued from today will be for a minimum £1,200, comprising:

the maximum £900 in daily penalties for non-filinga further late-filing penalty of £300 or 5 per cent of the tax due (whichever is higher).
People who receive a late-filing penalty can appeal against it if they think they have a reasonable excuse for not sending their tax return; for example, a family illness or bereavement.The penalties being issued over the next few weeks are in addition to £100 late-filing penalties for missing the 31 January filing deadline, which were sent out in late February and early March.

At Ashtons Legal, our specialist Tax & Trusts team can assist you with your personal tax affairs, removing the stress of completing your annual return or repayment claim and ensuring you know what and when to pay any taxes due to avoid these HMRC pitfalls and penalties. Contact the team on 01223 363111 for individual advice.