smallbusiness.co.uk: Helping your business think big

Email a Friend

HMRC punishes late tax returns

Some 850,000 penalties for late tax returns will be issued over the next fortnight, HM Revenue & Customs has announced.

Some 850,000 penalties for late tax returns will be issued over the next fortnight, HM Revenue & Customs (HMRC) has announced.

The £100 late-filing penalties are being sent to those who failed to send their 2010/11 self-assessment returns to HMRC on time.

Companies that still haven’t sent their return to HMRC risk further penalties if they do not act soon. Businesses whose return is more than three months late will be charged an additional £10 penalty for each day it remains outstanding, up to a maximum of 90 days.

Although the deadline for receiving online returns was 31 January, this year HMRC is not issuing penalties to business owners who sent their 2010/11 return online on 1 or 2 February, following strike action at HMRC’s call centres on 31 January.

Late-filing penalty recipients
can appeal if they think they have a reasonable excuse for not sending back their tax return in time, or they think a penalty should not have been issued for any other reason. Appeals should be made in writing by 31 March.

Examples of a reasonable excuse could include a family illness or bereavement, or a delay in HMRC sending out an online activation code.

Under a new initiative to help its customers, HMRC has confirmed that anyone who receives a penalty, but who believes they don’t need to be in Self Assessment, can call the department on 0845 900 0444.

If HMRC agrees, the return and the penalty will be cancelled. Full details are contained in a leaflet that will accompany the penalty notice.

HMRC‘s Stephen Banyard says, ‘We want the returns, not the penalties. So anyone who still hasn’t sent theirs should do so as soon as possible. People who receive a penalty notice should act now to avoid further penalties. They should send in their return, appeal if they think they have a reasonable excuse, or contact us if they think they shouldn’t have been in Self Assessment.’

See also: Cash for filing tax returns online?

Previous article

BCC lauds Fund injection

Next article

'Walking dead' SMEs threaten economy

Post a comment

Related

News | Opportunities

Late payment claims brought forward

News | Opportunities

Late payments solutions for SMEs

News | Opportunities

Chasing late payments

News | Opportunities

Cash incentive for online tax returns

Small Business Offers

More from Small Business

Starting a Business
Three ways to ensure sustainability at conferences in 2016

Three ways to ensure sustainability at conferences in 2016

Events, including conferences and conventions, can be a large source of greenhouse emissions. Here's how...  

Financing a Business
Top tips to maintain a healthy cash flow and keep growing

Top tips to maintain a healthy cash flow and keep growing

Picture the scene. Your customers can’t get enough of your products or services, you want...  

Running a Business
Why having a green office boosts business performance

Why having a green office boosts business performance

In this piece we explore why reducing your carbon footprint in the office is well...  

Blog
Five reasons why 2015 was a great year for SMEs – and five things to watch out for in 2016

Five reasons why 2015 was a great year for SMEs – and five things to watch out for in 2016

Greg Carter reviews the last year's impact on business and what companies should expect in...