HM Revenue and Customs has issued thousands of incorrect penalty notices for late personal and partnership tax returns.

Firm Baker Tilly have stated that clients whose returns were filed before the January 31st deadline received incorrect notices and that when they complained the HMRC replied that the complaint would be, "added to the growing pile."

"The £100 penalty, albeit small financially, can turn into a major administrative burden. Judging by the complaints we have already received, and the feedback from the HMRC, this problem could affect thousands of taxpayers," said George Bull, national head of tax at Baker Tilly.