HMRC to make £8.7m in late fines

According to figures released yesterday, a total of 10.39 million self-assessment tax returns were completed online, over 92 per cent of the total returns expected, and 150,000 more than last year.

More than 385,000 completed their return on the last possible day – Sunday, 31 January, while the Friday before – 29 January – was the busiest day, with more than 21,386 returns received per hour on average.

The initial late fee penalty for self-assessment tax returns is £100, which means the Revenue stands to make a total of £87m in fines.

Richard Morley, a partner in tax dispute regulation at BDO, said, “Under HMRC’s penalty system, returns filed a day late incur a fee of £100, even if there is no tax due. If the return is more than three months late, then HMRC will begin to charge £10 per day.

“Leave it more than six months and you will owe an additional penalty of £300 or 5% of the tax liability shown on the return, whichever is greater.”