An estimated 1.1 million people in the UK missed the closure of January 31 to submit their annual tax returns for self -evaluation, according to HM Revenue and Customs (HMRC).
Each late filer is now confronted with a fine of at least £ 100, unless they can prove that they had a valid reason for their delay.
HMRC revealed that more than 11.5 million taxpayers have succeeded in completing the process on time, with a flurry of last-minute activity on the deadline day. More than 31,000 submitted in the last hour before midnight. Self -assessment usually applies to those who have self -employed or multiple sources of income, for which both their tax returns and all associated payments are processed.
Although the official deadline for paying a tax due was also 31 January, HMRC will only impose late payment fines on 1 March. However, Barclays’ customers were left at the last minute because of the IT problems of the bank, which delayed some tax payments on Friday. Barclays has since assured customers that nobody will be omitted from their own pocket as a result of the technical problems.
Punishments for missing the deadline
Those who did not submit on time must immediately submit their declaration to prevent escalating fines. The criminal regime includes:
• An initial fine of £ 100, even if no tax is due
• Extra daily fines of £ 10 after three months, up to £ 900
• A further fine of 5% of the tax due (or £ 300, depending on which larger) after six months
• Another 5% of the tax due (or £ 300) after 12 months
Late taxpayers are also confronted with further costs if they do not arrange outstanding amounts, with fines of 5% of the unpaid tax levied on 30 days, six months and 12 months, as well as interest on late payments.
Myrtle Lloyd, the director -general of HMRC for customer service, thanked those who succeeded in getting the deadline and urged late files to quickly submit returns to minimize the impact of fines.
Anyone who is planning to challenge a fine must first complete their return before he submits in writing or via a designated HMRC form. However, the Tax and Customs Administration has confronted criticism of MPs with the telephone lines of customer service – claims that HMRC chief executive Jim Harra fiercely denies and describes accusations of a “deliberate poor” telephone service as “completely unfounded”.
Online platforms such as eBay and Vinted are now obliged to announce sales data for persons who have sold 30 items or more, or have earned at least £ 1,700. The change does not introduce new taxes on these transactions; Instead, it easily shares information to help the reports of HMRC Cross-Check people and to ensure correct tax conformity.
Now that the self -assessment window is closed, the message from HMRC is clear: if you have missed the deadline, file as soon as possible. You can not only reduce the increasing fines, but you can also start a formal professional process if you think you have grounds to dispute the fine.