hmrc negligence

HMRC getting tough on SMEs filing paper returns

HM Revenue and Customs have announced their latest tranche of measures to deter people from submitting paper-based tax returns, with a £100 penalty even if submissions arrive just a day late. Some have jumped up to say this is rather unfair, not least because HMRC gives people who file their returns on the Internet an extra three months to get everything submitted for the previous tax year.

In the case of those who file paper returns, the deadline is October 31st. For online returns, this extends to January 31st the following year.

HMRC has been keen to stress the benefits of the online system, not least because it can assure people pay the right level of tax. This is owing to the fact that the right levels are calculated automatically on your behalf.

Even if you pay the taxes owed to HMRC punctually, or don’t have any monies owed to the tax man once your self-assessment has been filled, the £100 fine will remain in place if you file late.