Yahoo Finance It's deadline day: record numbers have been fined by taxman for 'deliberate' self-assessment errors
Record numbers of middle-class taxpayers have been hit with fines for errors on their returns.
Some 143,000 penalties were imposed last year – triple the number in 2012 – as the taxman cracked down on those deemed not to have taken “reasonable care” when filing their returns.
As the midnight deadline for this year’s self-assessment looms today – January 31 – it has been estimated that about 400,000 self-employed workers, sole traders, freelancers and high earners are still to submit their forms.
Failure to do so incurs an automatic £100 fine – which can increase to £1,600 over time.
HM Revenue & Customs penalised 8,000 more UK taxpayers for unacceptable errors in the last tax year than it did a year earlier, according to data following a Freedom of Information request from accountants RSM.
The figures indicate that 40% more taxpayers are being fined by HMRC for deliberately understating their revenue on their self-assessment tax return.
During the 2015-16 financial year, 28,663 financial penalties were issued to taxpayers for errors made on self-assessment forms, compared with 20,740 throughout the 2014-15 financial year, and just 5,162 in 2012-13.
George Bull, tax expert, RSM, said: “It’s difficult to read the figures without drawing the conclusion that something has changed in HMRC’s approach to penalties.
“This spike in penalties suggests a marked change in attitude at HMRC, and it is clear that inspectors are now taking a much harder line.”
About 10 million Brits need to fill in a self-assessment but about 870,000 people missed last year’s deadline, immediately incurring a fine. The HMRC helpline is 0300 200 3310.
The top 10 excuses for late returns (as told to the taxman):
“My tax return was on my yacht…which caught fire”
“A wasp in my car caused me to have an accident and my tax return, which was inside, was destroyed”
“My wife helps me with my tax return, but she had a headache for ten days”
“My dog ate my tax return…and all of the reminders”
“I couldn’t complete my tax return, because my husband left me and took our accountant with him. I am currently trying to find a new accountant”
“My child scribbled all over the tax return, so I wasn’t able to send it back”
“I work for myself, but a colleague borrowed my tax return to photocopy it and lost it”
“My husband told me the deadline was the 31 March”
“My internet connection failed”
“The postman doesn’t deliver to my house”