Mon, 6 Feb 2012

Record number of SA tax returns filed on time as new penalty regime comes into force

A record 9.45m Self Assessment (SA) tax returns were filed on time this year, as HMRC rolled out its new penalty regime.

The Revenue says more than 80% of returns were filed online. This was despite call-centre workers, who would have fielded queries about the process, walking out on the 31 January deadline in protest at private contracts being considered in the public sector.

Although the deadline was unchanged, HMRC announced that no penalties would be issued for online returns received by midnight on 2 February.

Penalty notice

New penalties for late SA returns are an initial £100 fixed penalty, which will now apply even if there is no tax to pay, or if the tax due is paid on time.

The penalties are progressive over time and could result in a maximum penalty of £1,600 being due.

David Gauke, Exchequer Secretary to the Treasury, said: “HMRC have always been clear that they want returns not penalties, so it is good news that over 90% of all returns were submitted on time.

“I am also pleased that the extension to the filing deadline prevented people from being unfairly penalised if they were unable to speak to HMRC on the 31st.”

The busiest day for online returns was 31 January, when HMRC received nearly 445,000 submissions.

The SA rush hour occurred between 4pm and 5pm the same day, when 37,460 returns – more than one every six seconds – were received by HMRC.

This year’s record numbers show an increase from last year, when around 6.9m people had filed online by 31 January. The proportion filing online last year was 78%.

See also:

• 'HMRC is increasingly effective in getting money out of big business' says Treasury Secretary following £500m Barclays case
• HMRC gains power to demand cash securities from firms it thinks will dodge paying PAYE or NICs
• HMRC call centre strike goes ahead on SA deadline day – Revenue assures people there is a two-day extension