One million self-employed workers are yet to file returns
As many as 1m self-employed workers and investors have not filed taxes due in January, the Telegraph reports, with many expected to face a 5% rise in bills when they do eventually file returns because of a late payment surcharge. Some 270,000 people have been hit with the charge so far, on top of a £100 fine already issued for not filing by the end of February. Andy Chamberlain, of IPSE, a freelancer trade body, said although taxpayers should get their affairs in order and pay on time, HMRC should avoid “heaping further charges on those who are already struggling”.
Filing your self assessment return late not only incurs fines and penalties, but it also greatly increases your chances of a tax investigation. HMRC, quite rightly, take the view that if you can't get your financial affairs in order in 10 months and file a tax return, then there is likely to be something wrong or there is a problem. Either way, having a look at it is likely to increase the amoutn of tax that they take from you as a result of an investigation.