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Big
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Since the introduction of self-assessment in 1996, the number of people prepared to pay £100 for the privilege of filing their tax return late has increased year by year. Maybe it's inflation - £100 isn't what it was - or just familiarity breeding contempt, but that penalty doesn't seem to be enough to get everyone moving. And you don't even have to pay that if the tax has been settled by 31 January.
So the Revenue recently gave publicity to their much nastier weapon - £60 a day until you file, whether or not there is any tax to pay. They said they would only use this on people who were very late, and persistently late over a number of years - it's not clear yet how common the procedure will be.
The important thing to be aware of is that it's difficult for the Revenue to impose the daily penalty. The £100 fixed charge is simply spat out by the computer - but the daily penalty can only be charged by the Appeal Commissioners, so the Inspector has to organise a hearing and put a case before them. That gives the taxpayer time to put things right, even at the last minute.
Of course, if you always file and pay on time, it's nice to know that the Revenue are chasing up the other lot. But if you are a little late, remember that the threat of a daily fine is mainly just that - a threat. If the Revenue contact you and start talking about collecting tax or penalties, let us know immediately and we will help you to deal with them.
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