Why Do HMRC Issue Fines?


The truth is HRMC would rather not have to send fines to individuals for not completing their self-assessment tax return.  It costs them a lot of time and effort sending out 10,000’s of fines each year. However, this is the only way they can get people to take them seriously.  HMRC’s main priority is to get everyone to submit their tax return so they can collect any taxes that are due. So, if you bring your tax return up to date it is possible to appeal the fine.  However, HMRC will not review your appeal form until you have brought your taxes up to date.

Contact us now so that we can advise you on how to being your tax information up to date and submit your appeal (HMRC reserve the right not to accept an appeal but they are understanding of personal circumstances).

Who receives a fine?

Anyone that was registered for self-employment during the tax year and failed to submit their tax return by the deadline.  The tax year runs from 6th April to 5th April the following year.  From the last day of the tax year you have until 31st January the following year to submit your tax return.  If you don’t submit it HMRC will automatically issue you a fine.

How much is the fine?

There are stages to how much the HMRC fine will be.  If you miss the 31st January deadline then you will automatically be charged £100.  Then after 3 months you will be charged £10 every day you don’t return it.     

Will HMRC forget about me and stop chasing me?

No, HMRC has you on their computer and will automatically print and send you a fine, you will see the fines accumulating on your HMRC log in, or if we are your agent we will be able to see your tax information on our account.

Why did I get a HMRC fine?

You would have received a fine for not completing your self-assessment tax return by the deadline.  It means that you registered to work a self-employed and therefore need to confirm your yearly earnings to HMRC’s so they can tax your correctly.  If you worked under the Construction Industry Scheme (CIS) it’s likely that you are due money back. Please email us now so that we can assist you in bring your HMRC account up to date.

Is there anyway to get my fine cancelled?

HMRC reserves the right to cancel the fine if and only if you have brought your tax return up to date.   There are certain circumstances under which HMRC will accept an appeal. If you want to know how to appeal your HMRC fine please contact contact us now

I only worked for a few weeks under self-employed, do I still need to submit a tax return?

It doesn’t matter if you didn’t work at all.  It the fact that you hold HMRC you were going to be self-employed.  HMRC have you logged on their system stating you were going to work self-employed.  Whilst, they may have some information on their system about you working PAYE or CIS they may not know all your income details and therefore don’t know how to treat your tax correctly. HMRC may not know if you worked or not so until you tell them otherwise or fill your tax return they will keep issuing you fines.  These could amount up to £1000’s. If you want us to help you review your case simply email us with the subject “HELP”.