HMRC has raked in £89 million in one fell swoop from UK tax payers who failed to file their 2013/14 tax return on midnight 31 January this year, it has emerged.
As many as 890,000 people faced an immediate £100 penalty for failing to file on time, including higher earners with savings, people with several sources of income, self-employed individuals, contractors, freelancers and landlords.
They will also need to pay a flat £10 a day up to a 90 day maximum if their tax return is outstanding in 3 months’ time. If they don’t file by July 31, the bill would stand at £900 plus 5% of the tax due or £300 penalty whichever is the greater for being 6 months late. After 12 months, another 5% or £300 charge, whichever is greater.
These rules apply not just for those that owe tax to HMRC but also to those who do not owe but had to file a return.
Alan McCappin of Bradleys Accountants says, “The penalties will mount up quickly. Anyone who hasn’t filed yet, needs to do so urgently.”
If anyone has a genuine reason for failing to file, HMRC will accept a reasonable excuse. This includes
- a serious illness which leaves you incapable of filing a return
- death of a partner or close relative just around the deadline
- problems with HMRC’s online filing process
- loss of documents due to through theft, fire or flood
However, if you plan to offer any excuse you’d need to back it up with contemporaneous evidence like a doctor’s letter in case of an illness or a screenshot of the error message while trying to file through the HMRC portal.
We are still taking enquiries and will assist where we can. Please email some details to email@example.com or call Jean on 020 8303 1287. You can also tweet your queries to @BradleysAcc twitter feed too.