Millions face fines this week after HMRC makes 'baffling' decision

millions face fines this week after hmrc makes 'baffling' decision

This year, there is a reported whopping 56 per cent increase increase in time taken to answer calls by HMRC.

The latest analysis by finance experts, RIFT, has shown that the number of HMRC customers likely to miss this month’s self assessment tax deadline is expected to climb, as they struggle to get the help they need following HMRC’s decision to shut its helpline for all but priority calls.

The self assessment deadline is fast approaching and as of midnight on the 31st January, millions of self employed workers will be expected to have filed their self assessment tax returns. Last year, over 12m people were due to file a self assessment tax return last year. Of these, 8% missed the deadline.

This year, there is a reported whopping 56 per cent increase increase in time taken to answer calls by HMRC. At the start of December last year, HMRC moved to announce that they would be closing their helpline to all but priority calls – with experts saying they were “baffled”.

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Failure to file your self assessment could see you hit with an initial late filing penalty of £100 if you are up to three months late in doing so. You’ll have to pay more if it’s later, or if you pay your tax bill late and you’ll also be charged interest on your late payments.

Not only are many customers in danger of receiving fines for missing the self-assessment deadline, many more are worried that they will underpay on the tax owed, making them liable to further financial penalties down the line.

The figures from RIFT show that the average tax refund from HMRC currently stands at £1,625, having increased by 5.1% in the last year alone. Bradley Post, MD of RIFT, commented: “The decision by HMRC to close their helpline ahead of this month’s self-assessment deadline has been heavily criticised and quite rightly so as it’s likely to impact millions of people, many of whom will be undertaking the task of completing a self-assessment for the first time.

“While we can appreciate that the current economic landscape is far from ideal and HMRC itself is not immune to such factors, it’s fair to say that it should have been much better prepared to deal with the increased demand for its help and advice.

“For those still struggling with a self-assessment the best advice at this late stage is to contact them as early as possible with any query, have your finances well organised before you do and, if you’re still at a loss, seek the help of additional industry professionals such as an accountant, or a tax return specialist like RIFT.”

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