I see that various papers have headlines such as "HMRC warns 3.4 million people face fine worth ÂĢ900 after next week".
That's misleading.
Actual penalties for those who have been told to file tax returns but haven't by 31 January are:
- an initial ÂĢ100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time
- after 3 months, additional daily penalties of ÂĢ10 per day, up to a maximum of ÂĢ900
- after 6 months, a further penalty of 5% of the tax due or ÂĢ300, whichever is greater
- after 12 months, another 5% or ÂĢ300 charge, whichever is greater
There are also additional penalties for paying late of 5% of the tax unpaid at 30 days, 6 months and 12 months. If tax remains unpaid after the deadline, interest will also be charged on the amount owed, in addition to the penalties above.
There is an appeal process against fines where someone has an acceptable excuse.