Despite receiving the record number of 9.61 million self-assessment returns on time for the 2011-12 financial year, the department said that there were still a number of people who had failed to respond in time and will get the letters out to them by tomorrow (February 20th), which they should receive within seven days of posting.
The number of people filing by 31 January was a three per cent increase on last year and a further 60,000 filed after the deadline. This means that while they will still be given the £100 penalty, they will avoid the daily £10 charge.
However, some 790,000 taxpayers will be liable for the charge and interest, while if their return and tax bill is still outstanding at the end of July, the penalty increases to five per cent of the tax due or a minimum fine of £300, whichever is higher
HMRC is then entitled to give those who fail to file within 12 months a tax demand of up to 100 per cent of the tax due instead.
Having said that, taxpayers who feel that they have a reasonable excuse for not filing on time, such as bereavement or illness in the family can appeal to the taxman, as can people who receive a late filing penalty.
This should be done as soon as possible and, where the reason for late or non-filing is accepted by the department, the taxpayer will be taken out of self-assessment.
For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
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