Last year almost 19,000 people were fined for incorrect tax returns.
Of these, 10,703 were deemed to be serious deliberate errors, and 1,025 were classed as making deliberate errors and attempting to conceal them from HMRC.
The remainder were classed as having made careless mistakes or failing to take reasonable care, and could have been fined between 0-30% of the unpaid tax.
Fines for making deliberate errors range between 20-70% of the unpaid tax, while for deliberate and concealed errors range between 30-100% of the unpaid tax.
Penalties of £100 can also be levied for taxpayers who miss the online self-assessment deadline of 31st January. This penalty increases over time for continuing delay in filing the tax return.
The best way to avoid falling foul of HMRC is to ensure that your self assessment tax return is correct. If it’s complicated, or if you need reassurance, you should ask for help with preparing or filing your self assessment tax return from an accountant.
An accountant can also advise you on tax-free income allowances that you may have missed, such as uniform allowances or earnings from rent-a-room scheme.
Get in touch for help with your self assessment tax return.
