HM Revenue and Customs (HMRC) has been slammed over “extreme delays” in its service provision following the news that 1.1 million people missed yesterday’s Self Assessment tax deadline.
The Institute of Chartered Accountants in England and Wales (ICAEW) claims a “fundamental review” of the department’s performance is needed to determine why this happened.
Anyone who is self-employed and earned more than £1,000 in the 2022/23 tax year had to file their returns before midnight yesterday.
Those who are unable to complete their tax form in time risk being hit with an initial £100 fine from HMRC with penalties becoming more expensive over time if taxes are not paid.
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A record number of people filed on time but many missed the Self Assessment tax return deadline
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Caroline Miskin, the ICAEW’s senior technical manager for Digital Taxation, cited reports of issues with the Self Assessment helpline which could have contributed to people being unable to pay on time.
She explained: “Given the recent restrictions to HMRC’s Self Assessment helpline in which it only dealt with calls on filing, payments and repayments, and its closure in Summer 2023, it’s no surprise, but still disappointing, that 1.1 million people missed the self assessment deadline, around 100,000 more than last year.
“ICAEW has received reports of extreme delays on the self assessment helpline in recent days and considers that a fundamental review of HMRC’s service performance is needed.
“It should be recognised that, despite the difficulties, taxpayers and agents filed a record 11.5 million returns by the deadline.”
According to the tax expert, some of the people who missed the deadline will include those who do not need to file a return for the 2022/23 tax year.
People in this group should contact HMRC directly to get the return formally cancelled so a late filing penalty is not charged to them.
Ms Miskin added: “Other taxpayers may still not realise they have been drawn into self assessment territory due to rising interest rates and the freezing and reduction of bands and allowances, so they should register as soon as possible to minimise the risk of penalties.
“Anyone who has missed the payment deadline should contact HMRC immediately to either pay the tax that’s due or agree a payment plan.”
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Taxpayer risk an initial £100 penalty if they do not file on time
GETTYSelf-Assessment customers can potentially arrange an alternative payment arrangement through HMRC’s “Time to Pay” service.
Some 11.5 million taxpayers submitted their Self Assessment tax returns for the 2022 to 2023 tax year by midnight on January 31, according to HMRC.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Thank you to the millions of Self Assessment customers and agents who met the deadline.
“Anyone who has yet to file and is concerned that they cannot pay in full may be able to spread the cost of what they owe with a payment plan. Search ‘pay your Self Assessment’ on http://GOV.UK to find out more.”
A HMRC spokesperson told GB News said: “A record-breaking 11.5 million people filed their tax returns on time, with Self Assessment customers successfully using our online services to quickly and easily get the help they needed.
"This freed up our expert advisors to help people with urgent and more complicated queries, as well as help the small number unable to access our online services.”