A further 70,000 partnerships and 20,000 trusts also failed to file on time.
Eight million taxpayers sent in their forms by the midnight deadline on January 31. That figure includes an estimated 95% of those who do not employ a tax adviser.
The Financial Secretary to the Treasury, Dawn Primarolo, said she welcomed the huge effort made by taxpayers, advisers and the Inland Revenue.
![[ image: width=150]](/olmedia/50000/images/_53138_primarolo150.jpg)
"I am extremely pleased that eight million taxpayers sent their returns back on time. This is no mean effort in the first year of a new tax system," she said.
The figure of 810,000 individual taxpayers who missed the deadline is considerably less than many accountants had forecast. Many of them had predicted the figure would be as high as 1.5 million.
Now, many of the defaulters face the prospect of a £100 fine, meaning a windfall of up to £80m for the Treasury.
Exceptions made for minor errors
Ms Primarolo said she was prepared to be flexible. Taxpayers who forgot to sign their forms or failed to provide "one or two pieces of information" would have a second chance.
Those who sent back corrected forms by February 11 would be exempt from paying the fine.
"Self assessment has been a huge learning experience for all concerned, and one of the jobs now is to review how things have gone and see what improvements can be made for the future," said Ms Primarolo.
The Inland Revenue pointed out that not all of the 810,000 individual taxpayers, 70,000 partnerships and 20,000 trusts would be subject to an automatic £100 fine.
For example, if the tax outstanding is less than £100, the penalty will not exceed the tax due. And if people have a genuinely good excuse for missing the deadline, they can appeal against the penalty.
As well as £100 fines for failing to submit forms, interest on tax outstanding accrues at 9.5% on a daily basis.
Leading accountants attack new system
One of the UK's biggest accountancy firms, Ernst & Young, described it as a "nightmare tax system for the failure of almost one million tax payers to meet the January 31 deadline".
![[ image: width=150]](/olmedia/50000/images/_53138_taxform.jpg)
The director of tax at the firm, Douglas Fairbairn, said: "The Inland Revenue sent out nine million tax returns and it is clear from the evidence that nearly one in nine people did not meet the deadline."
He added: "Many taxpayers cannot cope with the staggering complexity of the tax system. The Chancellor must acknowledge that wholesale changes are necessary for the tax system to work effectively."
For people who have not yet sent in their returns, the Inland Revenue is still able to give help at its offices, on the Self-Assessment Helpline 0645 000444, and on its web site (URL above right).
Tax-return windfall for Treasury
(31 Jan 98 | UK)
Last minute tax return rush
(31 Jan 98 | Business)
Industry sees red over tax plans
(27 Jan 98 | UK)
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