HMRC sends nearly one million fines to taxpayers

The UK's Her Majesty's Revenue and Customs (HMRC) has issued about 850,000 penalties to taxpayers who missed the January deadline to file self-assessment returns, according to reports Monday.

The tax officials will have on Wednesday completed the mail-out of £100 fixed fines to those registered for self-assessment but who failed to file personal 2011-12 tax year returns online by January 31st, according to Sky News.

The penalty payments will increase HMRC reserves by around £85m. The late filing figure is down on the penalty number for the 2010-11 tax year in which 80.9% of the 10.5m taxpayers filed on time for the January cut-off.

Even though 60,000 late tax returns have been lodged between February 1st and 15th, they will still be liable to pay the £100 penalty.

"Anyone who hasn't yet sent their 2011-12 tax return to HMRC will have already incurred a £100 late-filing penalty," a HMRC spokesman said.

"Non-filers have to file online now to avoid further penalties or contact us to ask to be taken out of self-assessment, and provided they meet the criteria, we will take them out of SA and cull any penalties incurred."

The final figure is expected to increase as those who fail to pay the penalty and file returns by the three-month cut-off incur additional daily fines of £10 up to a maximum of £900, along with the initial £100 fine.

RD