IR To Hand Out Millions In Fines For Late July Tax Returns

by Robert Lee, Tax-News.com, London

01 August 2003

Some 440,000 UK taxpayers will face £44 million in fines for missing the July 31 tax return deadline, according to research firm IFA promotion.

When added to the 875,000 taxpayers who missed the January 31, 2003 deadline for the 2001/2002 tax return, this means that total fines handed out by the Inland Revenue for late returns will be in the region of £131 million. Based on last year's figures, half of those who missed the January deadline are expected to miss the July deadline, a fact that is likely to raise fresh concerns about the self assessment system. Late payers will also attract a 5% 'surcharge' on their outstanding tax bill which could average £2,000 per person.

"The taxman’s getting tougher on late payment, so it’s even more vital we get tough on tax waste," said David Elms, Chief Executive of IFA promotion, which works on behalf of the Independent Financial Advisors industry.

"These fines will particularly hit the self-employed, who are already reeling from the recent rise in national insurance rates," he added. "For many, self-assessment forms are pretty baffling and time-consuming – we’d urge them to seek financial advice to ensure their finances are in order well ahead of next year’s tax deadline.”

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