By Samantha Leathers

Copyright glasgowlive

HMRC has issued fines worth £5.5million to people in Scotland who filed their tax returns late between the 2022 and 2023 tax year. Figures obtained by Advice Direct Scotland via a freedom of information request showed 20,000 Scots faced the initial £100 fine after missing the January 31 deadline.

However, those who continued to ignore and avoid their tax return responsibilities faced additional £10 fines every day that their payment was late to a maximum of £900. Six months after the deadline, 5,000 people were hit with an extra fine of 5% of the tax owed or £300, whichever was higher.

A year after the deadline, 2,000 people still had not submitted their tax return and subsequently faced a second fine of the same amount according to PA. With the next tax return deadline a little more than four months away, tax experts are urging people to get ahead of their dus to avoid these costly penalties.

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 £5.5 million 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.”

Sorting out these returns and bills can be confusing, especially for those who find themselves having to do a Self Assessment tax return for the first time. But there is help available through taxadvice.scot, a free advice service run by ADS.

This service is backed by HMRC and aims to help people understand their tax obligations. It provides specialist advisers online or by calling 0800 756 3381 for support with the self-assessment process.

People who must submit a Self Assessment tax return are those who in the last tax year were:

Self-employed as a sole trader and earned more than £1,000 A partner in a business partnership Liable for Capital Gains Tax due to selling something that increased in value Liable for the High Income Child Benefit Charge

People who earn untaxed income may also need to send a tax return, this includes those who received money from:

Renting out a property Tips and commission Savings, investments and dividends Foreign income

The Gov.uk website has a checker tool which people can use to see if they need to send a tax return. If this is your first time having to submit tax returns, you’ll need to register for Self Assessment with HMRC by October 5.

Certain people may also need to fill out Self Assessment returns even if they aren’t in the above categories. This can be to claim some Income Tax reliefs, prove they are self-employed in order to qualify for benefits like Tax-Free Childcare or pay voluntary National Insurance contributions.