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HMRC penalty fall

HRMC has reported that the number of penalties issued for late tax returns has fallen by 39 per cent compared to last year.

It reported that it expects to issue 850,000 penalties for the 2010/2011 tax year with each fine to cost recipients £100. Furthermore HMRC adds that for each day after three months the return has not been sent to HMRC a fine of £10 a day exists, for a maximum of 90 days.

However as a result of the strike that took place at HMRC's call centres on the 31st January those that sent their return online on the 1st or 2nd February are not liable for a fine.

There also exist the opportunity to appeal a fine on the grounds of a 'reasonable excuse' for being late which includes a faimly illness or bereavement, or a delay in HMRC sending out the online activation code. Further information on appealing a fine is available here.

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