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23 Jan 2012
HM REVENUE & CUSTOMS could net £93m in fines from people who make late tax returns warns accountancy firm Blick Rothenberg.
Frank Nash, senior tax partner at Blick Rothenberg, told the Independent: "Maximising penalities is now an obligation for revenue offices. HMRC will not show any leniency on penalties."
Further reading
The taxman could net up to £9.3m daily under new fines the firm estimates, which include a penalty of £1,600 for offenders that are 12 months late, a substantial hike from its usual £200.
In a letter to The Independent, HMRC director Stephen Hardwick said: "We use penalties purely to encourage on-time filing and to be fair to the vast majority of taxpayers who file on time.
"Late payers will be hit by much heavier fines this year."
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Visitor comments Add your comment
First time filers will get caught out
I've been asked to help a friend find out how to file her first ever tax return online. She was s/e for 3m during 2010/11 and has given up waiting for HMRC to answer the phone on various occasions over the last 2 months.
I tried to help. I told her she needs to get a UTR and to register for online filing. I've looked on HMRC website, I've searched on it and I've tried google.
According to what I find on HMRC website my friend cannot register for online filing until she gets a UTR. When she submits a CWF1 online she got an email response saying a UTR could take 4-6 weeks.
As it stands she cannot file online before 31 Jan so will be hit by the new standard £100 fine.
This is going to happen quite a lot I would think.
Unless we've missed an obvious solution.
Mark
Posted by: Mark Lee, 24 Jan 2012 | 14:05
Caught out - not
Your client probably can't avoid a £100 penalty, so simply file a paper return before the 31st.
Posted by: Roger Tuffin, 25 Jan 2012 | 15:08
Late filing penalty
Your friend will not have to pay a late filing penatly as she will be allowed 3 months to file the return from the date the return is issued.
She will, however, face a £100 penalty for failing to inform HMRC within 3 months of becoming self employed.
Posted by: Paul Jenkins, 26 Jan 2012 | 09:34
has a return been issued
As she hasnt received a tax return notification your friend will have 3 months from the date of receipt of one from HMRC and the 31 Jan deadline will not apply.
make sure it gets filed online though!
Posted by: Steven Warboys, 26 Jan 2012 | 10:31
6th Floor New Baltic House, 65 Fenchurch Street
File an online return , keep the rejection and then file manually.
Appeal the penalty on the basis that you could not file online for the reasons stated.
HMRC lack of response etc.
Posted by: Gary Lee, 29 Jan 2012 | 11:15