As the self assessment deadline draws nearer, HMRC has revealed that around a third of people have yet to file their tax return.
According to the latest figures, as at 24 January around eight million people had completed their tax return, leaving just over three million returns still to be submitted.
It is thought that some 840,000 people missed the filing deadline last year.
‘The seven-day countdown has now begun,’ warned Angela McDonald, HMRC’s director general of customer services. ‘Put a stop to that niggling feeling and do your self assessment now.’
Those who submit their return after midnight on 31 January risk incurring a £100 fine, even if there is no tax to pay. Further penalties are then issued for prolonged delays.
Last year, HMRC announced plans to reform the current penalty system for late or missing tax returns. Under the proposals, which are subject to consultation, taxpayers who miss the deadline would receive driving licence-style points instead of an immediate fine.
Taxpayers would only then be penalised once their points reached a specified level.
Please contact us for assistance with your tax affairs.