HM Revenue & Customs has announced that record numbers of taxpayers have filed their self-assessment tax returns on time this year. Over 90 percent of taxpayers filed before the deadline of 31st January this year, which is the highest number since HMRC was formed in 2005. However, one million taxpayers can expect to receive a fixed penalty charge of Â£100 in the near future.
Although record numbers filed in a timely manner, one million taxpayers failed to meet the deadline, despite the fact that the filing date had been extended to 2nd February as a result of strike action by HMRC staff. The number of taxpayers submitting their tax returns online has also increased, with 80 percent filing online. The number of people filing online last year was 78 percent.
The Exchequer Secretary to the Treasury, David Gauke said:
âIâm delighted so many people filed their tax returns online this year. The record number proves that itâs quick, easy and secure to do. 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.â
The new penalty system means that a Â£100 fixed penalty will be issued to everyone who misses the filing deadline, even if the outstanding tax has been paid or there is no tax due. The penalties can easily reach Â£1,600 after three months. Online accounting is becoming increasingly popular with businesses, who can be assured that their self-assessment tax returns will be filed in a timely manner.