Approximately half a million people have still yet to file their 2011 self assessment tax returns and as a consequence will each be receiving an additional penalty notice for a minimum of £1,200. These penalties are in addition to the £100 late filing penalties which were sent out in late February and March of this year.
Self Assessment Tax Returns
New penalties were introduced in April 2011 to act as an incentive to individuals to file their tax returns on time and help reduce the costs of chasing up missing returns. They appear to have had some effect as the number of outstanding tax returns has almost halved in 2012, down to 5.9%, compared to 10.7% in 2011, although it must be noted that HMRC took 273,000 people out of the self assessment system. As a result of all this 518,000 fewer penalties have been issued.
HMRC's Director General for Personal Tax, Stephen Banyard, said, “We want the returns, not the penalties. This year, half a million people have filed their return – which means we are issuing 44% fewer penalties.
But despite several reminders, nearly 6% of people have not sent their 2010/11 tax returns to us and they'll be getting a penalty.”
Anyone with a reasonable excuse for not filing a tax return on time will have their penalties waived and those people who do not need to be in the self assessment system will be removed from it and their penalties cancelled.
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