HMRC issues tax return penalty reminder

Date: 30th March 2011

As well as being the start of a new tax year, April represents a new look for HM Revenue & Customs' (HMRC) tax return penalty system.

The organisation has issued a reminder that taxpayers will soon receive information on the new penalty framework, which explains how a return filed six months late could attract a fine of at least £1,300.

Stephen Banyard, a spokesman for HMRC, said: "The vast majority of people don't have to pay penalties because they send in their return and pay on time. But there are always a small number of people who have avoided filing or paying on time.

"HMRC spends a lot of time pursing late returns and getting involved in unnecessary appeals work. We want to focus our resources on more productive work such as catching criminals and collecting tax."

The expert added that the previous penalty of £100 was not serving as much of a deterrent, adding that the new system, which will see the size of the fine increase as filing is delayed longer, will hopefully encourage taxpayers to meet HMRC's deadlines.

Posted by Thomas Fletcher