Tax Rebates & Refunds

Penalties for late tax returns could exceed £368m this year

January 24, 2013
Posted in Income Tax — Written by Chris

A new report has revealed that HM Revenue & Customs (HMRC), the department responsible for income tax and tax rebates, could be raking in around £368 million in penalties and fines for late tax returns this year.

The professional advice website has come up with the estimated figure based on the number of tax returns that were filed late in the last tax year. The report included the penalties for sending in forms after the January 31st deadline, as well as surcharges for late payment of tax from previous years and charges for miscalculations and mistakes made on tax returns.

It estimated that after the January 2013 deadline, around £116 million will be charged in penalties and £236 million accounting for charges for mistakes and miscalculations. The remainder of the £368 million figure will be £16 million for late payment of tax.

HMRC changed the rules regarding penalties for late tax returns in September 2012. It now imposes an automatic £100 penalty for filing a tax return late, with additional fines of £10 per day up to a maximum of £900 being imposed after the January 31st deadline.

The website’s chief executive Karen Barrett warned:

“The rules of self-assessment forms remain unforgiving for taxpayers who return their forms incorrectly or who fail to meet the deadline. In order to avoid this unnecessary waste we are urging consumers to take tax action and act now.”

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