Fewer hit by late tax return penalty

20/February/2012

Some 850,000 people will be issued with penalty notices for failing to submit their tax returns on time, 550,000 fewer than a year ago.

Letters confirming the £100 penalties will be sent out by HM Revenue & Customs (HMRC) in the coming weeks.

Anyone who hasn't yet sent in their self-assessment tax return for 2010/11 is being urged to do so now – or risk further penalties.

The normal deadline for filing tax returns online is January 31st; however, no penalties will be issued for those filed on February 1st or 2nd this year because of industrial action at call centres over the deadline period.

Anyone who disagrees with a fine needs to lodge an appeal in writing by March 31st.

"We want the returns, not the penalties," said HMRC's Stephen Banyard. "So anyone who still hasn't sent theirs should do so as soon as possible."

Under a new charging structure, the tax authority will levy fines on anyone who failed to meet the deadline.

An automatic £100 fine is levied, even if people have no tax to pay, unless they have a reasonable excuse, such as family illness or bereavement.

After three months, there are additional penalties of £10 per day.