We regularly remind our self-employed clients of their obligations for filing to HMRC and the deadlines for sending in their Self-Assessment Tax Return, not least because of the significant penalties they can incur for failing to do so.

And there was a story in the media this month that highlighted the fact that people can still get hit with a fine, even if they don’t owe HMRC any tax.

Anyone earning under £12,570 – the Personal Allowance – doesn’t need to pay tax. But 95,000 people who fall into that tax bracket were fined in the 2021 to 2022 tax year because they still filed their Self-Assessment Return forms late.

That was a £100 fine for each of those affected – and therefore £9.5m in penalties raised by the Treasury. These figures came via a Freedom of Information request, later reported by national newspapers.

The rules weren’t always as they are now. Previously, if we go back to pre-2011, anyone submitting late, who paid their tax on time, wouldn’t get a fine.

There are ways and means to appeal if you do get a penalty from HMRC, such as one of these. You would need to have what the tax man calls a ‘a reasonable excuse’. For example, that may be the death of your partner or family member near to the deadline or you had an unexpected stay in hospital or serious illness.

Of course, it’s better to avoid the penalties in the first place. So, we always encourage clients to prepare well in advance of this important yearly deadline to avoid any problems at the last minute that may risk failing to meet the deadline.

If you need further help or information about filing to HMRC, please contact one of our team, who will be happy to support you.