Research by IFA Promotion, the lobby group for Independent Financial Advisers, has found that taxpayers in Britain could save themselves around £418 million by getting their finances in order. With the 31st January tax return deadline now passed, it is estimated that taxpayers will end up paying the Revenue £418 million in fines for late returns, miscalculations and surcharges on unpaid tax.
Failure to get the forms to HM Revenue and Customs by the 31st January deadline is resulting in an initial £100 late payment fine as well as a £60 per day fine! If the return is still overdue in July, a supplementary penalty of £100 will be added to the daily charges and a penalty of up to £3,000 may be charged for each year in which inadequate records are kept. It is estimated that £89 million will be wasted in fines for forms returned after the deadline, £308 million through miscalculations made on tax forms and £21 million in surcharges for unpaid tax from previous years.
Our view
If you have still not done your return, get it done today. HM Revenue & Customs will waste no time if piling up the fines. Need some help? Contact us.