HMRC in ‘hot pursuit’ of late self-assessment tax returns

Knowledge base from Boox

By Lynne Gowers on 1st May 2014

HMRC in ‘hot pursuit’ of late self-assessment tax returns

HM Revenue and Customs (HMRC) is set to ratchet up penalties for self-employed individuals who missed the January 31st self-assessment tax return deadline, with their applications now being three months late. Contractors and freelancers who fail to file the relevant documentation by today (May 1st) could face fines of up to £900 as the tax body looks to clamp down on late applications.

HMRC in hot pursuit of tax returns

Some 710,000 people still have outstanding self-assessment documents and have subsequently been hit with a standard £100 late filing penalty.

However, it is now the case that further £10 a day fines will come into play from today (May 1st) until Tuesday July 29th as HMRC looks to encourage those who still haven’t completed a tax return to do so. After this period has expired, independent workers who still haven’t completed and returned the documentation will face much steeper penalties from the tax office.  Here’s a full list of the penalties you can expect to face

Accountants are suggesting that those who still have an outstanding self-assessment tax return may benefit from filling the form in online as it could be less costly than sending in a physical copy of the return

The number of independent workers who miss the self-assessment deadline is a major issue for HMRC despite the figure dropping from last year by around 20,000 people. In the tax year before that, 850,000 missed the deadline and so progress is being made. However, the number still remains to high in the eyes of the tax office.

Penalties may be waived in extreme circumstances (not like these!), such as a flooded workplace, but it seems that too many self-employed individuals are still just failing to get their documentation in order in time.

There are numerous options available for contractors and freelancers to help them manage their finances and tax payments. Accountants or online accountancy applications are a common way for independent workers to deal with the process efficiently as it helps them to monitor and manage their sensitive information with the help of a qualified professional.

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