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This is, however, 550,000 fewer than last year.

 

The official deadline for making a tax return online was 31 January but due to the industrial action by HMRC staff on 31 January no penalties are being issued to those who completed the form online by midnight on 2 February.

 

Letters outlining the £100 penalties are being sent out over the next fortnight.

Under the new fines structure, the penalty will apply even if people have no tax to pay or the tax owed is less than the penalty applied.

 

After three months, additional fines of £10 per day start to accrue. There are also additional new penalties for paying late of 5% of the tax unpaid at 30 days, 6 months and 12 months. 

 

You may avoid a penalty if you have a ‘reasonable excuse’ for late filing. A ‘reasonable excuse’ is not defined by law but generally means an unexpected or unusual event that prevented you from filing on time. This could include, for example, family illness or bereavement, or a delay in HMRC sending the activation code for filing online.

 

Anyone wishing to appeal against the fine should write to HMRC by 31 March. You should also contact HMRC on 0845 900 0444 if you don’t believe you need to be in self assessment.

For further information on Self Assessment tax returns you can contact Foremans LLP on 01244 625 500 or by clicking here.