Individuals who have not turned in their tax returns for 2016/17 by the due date will soon begin to receive daily penalties of £10.
The Self-Assessment tax return forms were due by 31 January 2018, and people who did not submit their forms on time will have already received a £100 penalty. Those who still failed to turn in their forms three months later began to receive daily penalties from 1 May 2018.
These individuals will continue to receive daily £10 penalties for up to 90 days unless they submit their tax return forms during that time.
According to figures from HMRC, 10.7 million individuals sent in their tax return forms by 31 January 2018. This left around 745,588 individuals who missed the deadline.
Robin Williamson of the Low Incomes Tax Reform Group (LITRG) said: “If a tax return for 2016/17 has still not been filed by 31 July 2018, the initial penalty of £100 and the daily penalty chargeable will amount to a total of £1,000, in addition to which a further penalty of at least £300 becomes chargeable.” These automatic penalties do not take into account the amount of tax that people owe, even if they owe nothing or are due to receive tax back.”
Mr Williamson added: “If you have registered for Self-Assessment, you must submit a tax return or inform HMRC that you no longer fall under the Self-Assessment criteria and ask them to agree to cancel the requirement for a tax return. If they do this, then any late filing penalties will also be abated.”