HMRC jumps gun on tax return penalties

The letters, which include penalty notices, have been received by some of the more than 11.5 million people — about a third of the working population — who have to file their form by the end of this month.

HMRC said on Thursday it is still waiting for about 4.25 million people to file their returns.

But is has been claimed some of them now appear to have been wrongly sent late penalty notices demanding £100.

Robert Pullen, a partner at Blick Rothenberg, said: “This is the last thing individuals want to receive in January — a £100 automatic penalty when the deadline hasn’t even been reached yet.”

He added: “After contacting HMRC, we were informed this was a system error affecting tax returns not yet submitted online and that a number of penalty notices have been sent out. In all cases we are aware of, the penalties have been cancelled when requested without challenge but many taxpayers may be unaware of the timing error. Anyone who has received these premature penalty notices should contact HMRC as soon as possible to have the matter put right.”

A penalty letter, seen by The Times newspaper, was sent out by HMRC’s office in Nottingham to a taxpayer who had filed their return online on January 2. The letter, which was dated January 8 and received by the taxpayer’s accountants Blick Rothenberg on January 16, said: “Your tax return for the year ended 5 April 2018 was not sent in on time. Because of this a penalty of £100 is payable.”

It was cancelled by the tax office after Blick Rothenberg contacted them on January 17. The firm has received other penalty letters too.

HMRC denied there was a problem.

A spokesman told The Times: “No penalty notices have been sent to customers doing their self-assessment online. Those who have sent their paper returns late have been issued penalties as the paper deadline has passed.”