Scots fined £5.5m by HMRC after tens of thousands of late tax returns

HMRC handed out £5.5m in fines over late tax returns in Scotland in the space of a year, according to new statistics.

Figures obtained by Advice Direct Scotland via freedom of information found 20,000 Scots in the 2022/23 tax year faced an initial fine of £100 for missing the January 31 deadline.

Some 8,000 of them had their fines increased, which rises by £10 per day to a maximum of £900.

A further 5,000 Scots missed their tax return for six months, resulting in an extra fine of 5% of the tax owed or £300, whichever was higher.

By a year after the deadline, 2,000 people still had not submitted their return and were hit with a second fine of the same amount.

ADS, which runs the free advice service taxadvice.scot, urged anyone completing online self-assessment returns to meet next year’s January 31 deadline to avoid penalties.

Anyone who earns more than £1,000 in a year as a sole trader must submit a tax return, as do people who need to pay capital gains tax or are affected by the high-income child benefit charge.

Other revenue streams, such as renting out property, tips and commissions, income from savings investments and dividends, may also need to be declared.

Andrew Bartlett, chief executive of ADS, said: “Thousands of Scots end up paying fines that could easily have been avoided by filing their returns on time.

“In just one year, these fines have reached £5.5m and even a small delay can trigger penalties that quickly mount.

“We know life can get busy and tax returns can feel daunting, but leaving it too late can become very costly.

“Our advisers provide confidential support and guidance, free of charge, to help people through the process.”

Backed by HMRC, taxadvice.scot can help people understand their tax obligations.

Specialist advisers are available online or by calling 0800 756 3381 for support with the self-assessment process.