TAX: A total of 850,000 penalties for late tax returns will be issued in the next fortnight – 550,000 fewer than the same time last year.

HM Revenue & Customs (HMRC) announced this week that letters containing the £100 late-filing penalties are being sent to people who failed to send their 2010-11 self-assessment returns on time.

Following strike action at HMRC's call centres on January 31, anyone who sent their return online on February 1 or 2 will not be issued with penalties.

However, people who have yet to submit their return to HMRC will risk further penalties, with anyone whose return is more than three months late charged an additional £10 penalty for each day it remains outstanding, up to a maximum of 90 days.

People who think they have a reasonable excuse for not sending back their tax return in time can appeal against their late-filing penalty.

Examples of a reasonable excuse could include a family illness or bereavement, or a delay in HMRC sending out an online activation code.

Appeals should be made in writing by 31 March.

More information is available at www.hmrc.gov.uk.

Under a new initiative, HMRC has confirmed anyone who receives a penalty, but who believes they do not need to be in self-assessment, can call the department on 0845 9000444.

If HMRC agrees, the return and the penalty will be cancelled. Full details are contained in a leaflet that will accompany the penalty notice.

Alternatively, visit www.hmrc.gov.uk/latetaxreturn for further information.