13/01/2009 - Warning as tax deadline looms
More than £479 million will be forked out in penalty charges this year by small businesses and workers who have failed to hit the tax self-assessment deadline, it has been predicted.
Unbiased.co.uk said that £102 million will be collectively paid in fines for self-assessment forms returned after the January 31 deadline, with a further £315 million levied on people who have mis-calculated how much they owe.
The independent financial advice website also predicts that around £62 million will be handed over in surcharges on unpaid tax from previous years.
There is an automatic £100 fine for failing to deliver the form by January 31, with a further £100 fine if it is still not in by July, as well as interest on any outstanding tax.
David Elms, chief executive of Unbiased.co.uk, said: "The penalties for those who return their self-assessment forms late or incorrectly remain unforgiving.
"Missing the HM Revenue & Customs' deadlines inevitably results in hefty fines, and in the current climate more than ever we would urge consumers to avoid this by ensuring that their forms arrive on time and in order."
Around 900,000 taxpayers failed to hit the self-assessment deadline last year, but half did not incur a penalty as they did not owe any tax and any penalty imposed cannot exceed the amount of tax owed, an HM Revenue & Customs spokesman said.
Copyright © Press Association 2009
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