UK Inland Revenue To Take Tough Line Over Late Payments

by Jason Gorringe, Tax-News.com, London

21 January 2002

Tax experts in the UK are warning taxpayers to take Inland Revenue threats regarding the late submission of self-assesment returns very seriously.

The deadline for submissions is January 31st, although there will be a days grace, as forms submitted on February 1st will be regarded as late, but no fines will be issued. However, accountancy firms are warning taxpayers not to take the deadline lightly, as they may face heavy fines, interest, and a great deal of stress if they do.

'The Inland Revenue has announced that it will be taking a tougher line on tax payments in 2002,' explained Peter Penneycard, the Director of Tax at UK-based accountancy firm, PKF. 'It considers tax paid late as an unsecured loan to the taxpayer and sees no reason why the taxpayer shouldn't borrow from his or her bank so that they can pay up on time.'

He warned that: 'It will be enforcing penalties, interest charges and surcharges more strictly, and backing this up by chasing outstanding tax more vigorously by telephone through a specialist call centre.' According to the Inland Revenue, an instant fine of £100 will be charged for late payments, and a 5% surcharge will be added to amounts still outstanding at the end of February.

Mr Penneycard concluded that: 'Those with a financial hangover from Christmas should think twice before delaying tax payments. Inland Revenue interest and surcharges could end up costing more than a commercial loan and be a lot more stressful.'

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