The self-assessment tax deadline has passed and with it, a total of 746,000 taxpayers, who missed the deadline, could be facing fines of £100.
Around 11.4 million people are required to file a self-assessment tax return because they are either self-employed or they have a second source of income.
The deadline for paper returns to be filed was the end of October 2017, while for those choosing to use the online system, January 2018 was the time when they should have submitted their returns.
Despite the number of late deadlines, HMRC said that a record number of people had filed their tax returns on time.
The number of taxpayers filing on time was 10.7 million, with 6.5 per cent not filing on time. However, this compared to 7 per cent for the previous tax year shows there is an improvement.
Angela MacDonald, who is HMRC’s director general for customer service, said: “We want the number missing the deadline to be zero; we will continue to adapt the process to make it easier and simpler for our customers until every return is in on time and without avoidable errors.”
Ms. MacDonald went on to say that HMRC does not want to issue penalties; it would rather receive tax returns on time. Under the current system, HMRC can issue a penalty fine of £100 for those filing late within the first three months after the online deadline.
After the three months are up, penalties of £10 per day could be levied, until a maximum of £900 has been reached. Further charges can be imposed six and 12 months after the deadline.