While the majority of taxpayers filed their 2017-18 Self Assessment return on time, 731,186 didn’t – running the risk of receiving a £100 late filing penalty.
In the aftermath of the Self Assessment deadline, HMRC has revealed that over 93 per cent of taxpayers filed on time – a new record.
But with so many people still missing the deadline, the tax authority claims it'll treat those who have ‘genuine excuses’ leniently.
Each of the 731,186 taxpayers who filed their tax return late are liable for a late payment penalty, which is £100 initially.
This is due even if there’s no tax to pay, or if you paid your tax bill on time. Over time, the fine increases:
HMRC has also highlighted additional penalties for paying your tax bill late. This is five per cent of the tax unpaid at 30 days, six months and 12 months.
HMRC says that a record number of taxpayers filed online, with 10,129,234 choosing to fill in an online return over a paper one. This was 93.5 per cent of all returns filed.
This is a positive sign considering small businesses should be preparing for Making Tax Digital for VAT, which starts in April 2019. The self-employed can also join a pilot scheme for sending digital income tax updates.
HMRC might be hoping that the record number of people filing online means taxpayers will be ready for the full leap to Making Tax Digital, although this won’t happen until 2020 (at the earliest).
HMRC also revealed that 735,258 taxpayers left filing their return to the 31 January. The most popular time to send was 4-5pm, with 60,000 returns being submitted over the hour.
Our own data shows that nearly 1,000 people read our when is the tax return deadline article on deadline day.
If you haven’t filed your tax return, it’s important to get in touch with HMRC as soon as you can. HMRC says: “The department will treat those with genuine excuses leniently, as it focuses penalties on those who persistently fail to complete their tax returns and deliberate tax evaders. The excuse must be genuine and HMRC may ask for evidence.”
The reasonable grounds for appealing a penalty can include situations like a bereavement and an unexpected hospital stay.
Read more about HMRC late filing penalties, penalty appeals and reasonable excuses.
We also have a tax and Self Assessment resource you can use if you need more information – it's a collection of our top tax articles and guides in one handy place.
How did you get on this tax return season? Let us know in the comments below.
13 April 2018 • 3-minute read
Income tax is one of the key financial considerations for every self-employed person in the UK. You’ll have to pay income tax, and you’ll…
21 November 2019 • 5-minute read
The self-employed usually need to file a Self Assessment tax return each year. This is true whether you’re a sole trader, are in a business…
6th Floor99 Gresham StreetLondonEC2V 7NG
Sol House29 St Katherine's StreetNorthamptonNN1 2QZ
© Copyright 2020 Simply Business. All Rights Reserved. Simply Business is a trading name of Xbridge Limited which is authorised and regulated by the Financial Conduct Authority (Financial Services Registration No: 313348). Xbridge Limited (No: 3967717) has its registered office at 6th Floor, 99 Gresham Street, London, EC2V 7NG.