Late Tax Return £100 Fine

bluphoto7

I've been filling in a tax return every year for about the last five or six years, although this yearm I simply forgot, and missed the deadline.

The thing is, I've always paid tax through PAYE on my sole income (approx £40k), and whenever I've submitted my tax return, I've maybe got a letter saying that I owe them a pound or two, but nothing much - I assume this year would be no different. Indeed I wonder why I have to fill out a tax return at all!

Okay, so now I'm faced with this £100 fine for late submission of my tax return, which I see as ludicrous!

From what I can tell, I'm being fined for not telling the tax office that I don't owe them anything, even thoguh they already have all my tax details as I've ben paying tax through PAYE all along - what gives.

Even if the fine stands, isn't there something in law in recent years (I think it started with the bank charges) about fines and charges having to represent the actual cost incurred by the charging body? Would it really cost the IR £100 more to process my details now than it would if I had submitted them on the deadline date of Jan 31?

thanks for any advice or assistance you might eb able to offer.

rgds,
Guy Carnegie

patchy987

sorry i dont have the answers but my hubby has a similar situation going on and im interested to see what answers you get

Willman_Rodders

Hi bluphoto7 (and patchy987),

Please read:

http://www.hmrc.gov.uk/sa/penalties.htm

and you will see down the page 'Reduction for Fixed penalties' implying that the penalties are reduced to the size of the tax that is actually due.

So if you owe HMRC £nil then you pay 2 x £nil = £nil. if you owe £2 tax then you now pay £2 tax overdue + £2 late penalty fee = £4. That's my interpretation. HMRC will clarify.

Regards,

Rod

bluphoto7

Now THAT'S the kind of information that Adam Hart-Davis should be advertising!

Tax really doesn't have to be taxing!

Now what would be really cool would be if they doubled any rebate you were due as well!

By the way - thankyou Willman

BoGoF

As has been said the penalty cannot exceed the tax that was due for payment on the 31 January so when you do send your Tax Return then any penalty will be reduced to the amount of tax due.

Based on what you have said you no longer have any criteria for filling in a Tax Return. I assume you wait until the last minute each year before sending in your return ? I ask this because, normally, the revenue computers will automatically deselect records where no SA criteria exist but the following years Tax Returns are selected for issue during mid Feb so if you submit your return at the end of January but your return is not processed until after the selection date you will never come out the system. my advice is file your 2007-08 Tax Return early this year and it should be your last.

powertothepeople

hi, I posted a very similar question a week ago and had a similar reply. I have appealed to my local tax office but yet to hear - they don't half take a time to reply. I also rang the inland revenue gen enquirires office but the chap there wasn't quite so forthcoming. I also think martin lewis should do a programme into this 'scam' as I don't believe it costs the irs £100 if you send in your tax form late. surely on the 31 jan there must be mountains of forms to sort out and they themselves will take weeks to process. good luck and will inform as to my outcome too.

Mikeyorks

powertothepeople wrote: »

into this 'scam' as I don't believe it costs the irs £100 if you send in your tax form late

It's not a 'scam' ...... it's a legally enforceable penalty which is in the Taxes Acts and endorsed by Parliament. You won't get anywhere by suggesting it aligns to bank charges - so I trust you didn't put that in the appeal? You have 8 months in which to submit the Return and avoid a penalty.... isn't that long enough?

chappers

the fine is there to deter late filing and is a genuine penalty.

sassybooboos

i also have recently got one of these which did come with a leaflet explaining what they wouldn't consider as an excuse for not filing in time.

have sent them a letter my accountant has drawn up but mine is re a partnership that never became a partnership, but he has put on there that as nil balance is owing there shouldn't be a charge. ( can't remember exact words) but basically saying how can they fine you when nothing is due.

still waiting for reply from them.

mymatebob

late submission of my tax return

That will be it then - you didn't play by the rules so you lose.

It is not as if they ask you one day and you file your return the next, plenty of time to do it.

Sorry.

jsoap

Had the same problem this week because the notifications were being sent to an old address. Called the tax office who confirmed that the fine is only applied if you own them money. eg £1000 owed - £100 fine, £50 owed £50 fine, £0 owed - no fine.
Went online to submit return, and the £100 fine was showing in the outstanding payments section, requiring immediate payment. Submitted the return online (no tax owing) and after 24 hours or so, the £100 fine dropped off the outstanding payments section. Seems odd that the tax office does not send reminders by email also.