The thing is, if HMRC were staffed appropriately, they'd just be able to take action against non-submitters as they went along, and then there wouldn't be so many overdue returns. The rules are clear, HMRC know precisely which businesses are in arrears and what returns they're supposed to have submitted, and sanctions are available - there just isn't the workforce to chase it up properly. If there were, I would speculate that the extra staff would more than pay for themselves.
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