According to recent figures, a whopping 750,000 self-employed workers missed the January deadline for their self-assessment tax return. And, now, run the risk of being fined!
HMRC stated that while almost 10.7 million filed their self-assessment return on time, 745,500 were left still outstanding. Consequently, HMRC described that these people are now a risk of being issued a fine of around £100. However, a spokesperson described though that not everyone who missed the deadline will automatically receive a fine. They do have to have a valid excuse for missing it though! If not, they will be issued with a penalty.
HMRC added: “If you’re one of the small number that missed the deadline, please submit your return now to avoid further penalties.”
“We really don’t want penalties, we just want tax returns.”
The fixed penalty for late returns is £100. This applies regardless of whether any tax is due or whether the tax that is owed is paid on time. But it doesn’t stop there either. If this fine isn’t paid within three months, self-employed workers will find themselves with additional fines. Specifically, £10 a day will be added to the sum. This can soon add up to with the cap being at £900.
If there’s further issues though, and the sum is not paid within six or twelve months, even more fines will be put in place. This is of £300, or 5% of the tax that is due, dependant upon which one is more. The Telegraph described though: “In November it emerged that the £100 immediate fine was to be replaced by a driving-licence-style points system.”
“The change forms part of a series of Treasury reforms which aim to concentrate on serious tax avoidance and not punish taxpayers who make simple errors.”
There is some good news though, the number of people failing to submit their self-assessment is down compared to last year in which 840,000 didn’t complete it on time. The number this year could have been a lot higher though! When looking at the breakdown of when people submitted their assessments, 30,000 self-employed workers sent theirs within the last hour before the deadline. Cutting it close!
So what do you think of this? Did you manage to submit yours on time? Or could you soon be receiving a fine? Let us know in the comments below.