£10/day penalty
HMRC is collecting £10 per day every day from workers who have failed to file their returns on time, Since May 1, officials at HM Revenue and Customs have been thrashing 650,000 late filers with a £10-a-day fine.
Many of those affected are likely to be the self-employed, higher earners with savings and landlords and pensioners make up the rest. Many may not even owe any tax, but have simply failed to file a return to prove their earnings. Their tax returns were originally due on January 31 this year, covering their finances for the 2010-2011 tax years. But after missing the original deadline, and picking up an initial £100 fine, they must now pay a flat £10 a day on top for every further delay of 24 hours.
If they have not filed by the end of July, that bill will stand at £900 – when they will then face yet another penalty, this time for £300. The tougher rules will even affect those who do not owe a penny to the taxman. Read more