E-Filing Record Set By UK's Self-Assessors

by Robert Lee, Tax-News.com, London

09 February 2012

HM Revenue and Customs (HMRC) saw a record 7.65m Self Assessment tax returns filed online this year, with a total 9.45m returns sent on time.

The UK's tax authority has revealed that 80.9% of Self Assessors used its online return facility, with the busiest day for e-filing the January 31 deadline. HMRC received nearly 445,000 returns that day, with 37,460 returns – more than one every 6 seconds – received between 4pm and 5pm UK time.

For the first time in seven years 90.4% of taxpayers met the deadline, an increase of 4% (700,000 returns) on last year. By January 31, 2011, around 6.9m people had filed online, with the proportion using e-filing at 78%. The total number of both paper and online returns broke the 9m mark for the first time.

HMRC says that many took advantage of the Christmas holidays to complete their returns this year, with 1,100 people filing online on Christmas Day; 3,512 on Boxing Day; 11,648 on New Year’s Eve; and 8,935 on New Year’s Day.

Due to industrial action by contact centre workers, HMRC was forced to push back the introduction of its tough new system of penalties to midnight on February 2 after fears taxpayers would not be able to secure advice on deadline day. The new system means that all late Self Assessors will face a GBP100 (USD159) penalty, regardless of whether they have any tax to pay.

If tax is owed and still not paid after three months, additional daily penalties of GBP10 per day will be levied, up to a maximum of GBP900. After 6 months, a further penalty of 5% of the tax due or GB300, whichever is greater, will be charged; and after 12 months, there will be another 5%/GBP300 charge, whichever is greater. In serious cases, the penalty after 12 months can be up to 100% of the tax due. The changes mean that a maximum penalty of GBP1,600 can now be charged.

David Gauke, Exchequer Secretary to the Treasury, said: “I’m delighted so many people filed their tax returns online this year. The record number proves that it’s quick, easy and secure to do. HMRC have always been clear that they want returns not penalties, so it is good news that over 90% of all returns were submitted on time. I am also pleased that the extension to the filing deadline prevented people from being unfairly penalized if they were unable to speak to HMRC on the 31st.”

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