While a record breaking 11.1 million taxpayers submitted their self-assessment returns by the 31 January deadline, nearly one million (958,296) missed the deadline.
This means eight percent of taxpayers were immediately hit with a £100 fine, boosting HMRC’s takings by nearly £100 million.
This figure will further grow, as if returns are over three months late HMRC will begin to charge £10 a day. After six months taxpayers will be charged an additional penalty of £300 or five percent of the tax liability shown on the return, whichever is greater.
Dawn Register, partner in tax dispute resolution at BDO, su...