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No £100 fine for late tax returns, says HMRC | No £100 fine for late tax returns, says HMRC |
(about 5 hours later) | |
People who have filed late tax returns have been let off paying a £100 fine for missing the deadline, HM Revenue and Customs has confirmed. | People who have filed late tax returns have been let off paying a £100 fine for missing the deadline, HM Revenue and Customs has confirmed. |
But the penalty has only been waived for individuals who provide a "reasonable" excuse for being late. | But the penalty has only been waived for individuals who provide a "reasonable" excuse for being late. |
The development was disclosed to the Daily Telegraph, via a leaked memo, and could affect up to 890,000 people. | The development was disclosed to the Daily Telegraph, via a leaked memo, and could affect up to 890,000 people. |
A spokesman for HMRC said it wanted to focus more resources "on investigating major tax avoidance and evasion". | A spokesman for HMRC said it wanted to focus more resources "on investigating major tax avoidance and evasion". |
The Telegraph report says the internal memo asks tax officials to remit fines without further investigation for those people who could show mitigating circumstances, and who appealed against the fine after their tax return was sent in. | The Telegraph report says the internal memo asks tax officials to remit fines without further investigation for those people who could show mitigating circumstances, and who appealed against the fine after their tax return was sent in. |
'Fair and proportionate' | 'Fair and proportionate' |
HMRC is facing a backlog of almost a million letters and staff have been taken off call centre duties to work through the mail, according to the paper. | HMRC is facing a backlog of almost a million letters and staff have been taken off call centre duties to work through the mail, according to the paper. |
The deadline for self-assessment returns was midnight on 31 January, and as many as 890,000 people missed it, the Telegraph says. | The deadline for self-assessment returns was midnight on 31 January, and as many as 890,000 people missed it, the Telegraph says. |
It quotes the memo as saying: "Our penalty regime is intended to influence customer behaviour, but also be clear and cost-effective, fair and proportionate. | It quotes the memo as saying: "Our penalty regime is intended to influence customer behaviour, but also be clear and cost-effective, fair and proportionate. |
"The current way of managing penalties does not meet these objectives, and so we have decided to take a more proportionate approach where a customer has filed their return late, and then appealed against their penalty… | "The current way of managing penalties does not meet these objectives, and so we have decided to take a more proportionate approach where a customer has filed their return late, and then appealed against their penalty… |
"This means that in the vast majority of cases we will be accepting the customer's grounds for appeal, and we can cancel the penalty." | "This means that in the vast majority of cases we will be accepting the customer's grounds for appeal, and we can cancel the penalty." |
On its website HMRC lists excuses it regards as acceptable for late payment. These include the death of a family member, a stay in hospital, a computer failure, fire, or postal delays. | On its website HMRC lists excuses it regards as acceptable for late payment. These include the death of a family member, a stay in hospital, a computer failure, fire, or postal delays. |
'Good reason' | 'Good reason' |
A spokesman for the UK's tax authority said that HMRC had "always accepted" those with a reasonable excuse should have a penalty waived, and it was now "expediting that process". | A spokesman for the UK's tax authority said that HMRC had "always accepted" those with a reasonable excuse should have a penalty waived, and it was now "expediting that process". |
A statement from HMRC added: "We've been clear we want to focus more and more of our resources on investigating major tax avoidance and evasion rather than penalising ordinary people who are trying to do the right thing. | A statement from HMRC added: "We've been clear we want to focus more and more of our resources on investigating major tax avoidance and evasion rather than penalising ordinary people who are trying to do the right thing. |
"But no one will be let off the fine unless they've now sent in their return and have a good reason for sending it in late. | "But no one will be let off the fine unless they've now sent in their return and have a good reason for sending it in late. |
"This is part of our planned approach to penalty appeals, particularly for small businesses and individuals who have sent their tax return in late." | "This is part of our planned approach to penalty appeals, particularly for small businesses and individuals who have sent their tax return in late." |
Are you waiting to hear from HMRC regarding a late tax return? Have you previously been fined for a late tax return? You can share your experiences by emailing haveyoursay@bbc.co.uk. | |
If you are available to speak with a BBC journalist, please include a contact telephone number. |