UK WASTES 365 MILLION IN TAX RETURN DELAYS AND MISTAKES

Missed the deadline for the taxman to do your sums?

Call 0800 085 3250 and get an IFA to help sort out your financial position

365 million will be served up unnecessarily to the taxman in fines this year as a result of miscalculated or delayed self assessment tax returns, reveals research* from IFA Promotion, the organisation promoting the benefits of independent financial advice.

The startling findings highlight the difficulties faced by taxpayers attempting to calculate their tax bill.  Since self assessments inception in 1997 there has been a steady rise in the number of late returns and last year saw 808,000 deadline defaulters alone.  Although there is now the option of filling in the form online and having your tax liability calculated for you, many will have missed the September 30th  deadline and are now faced with calculating their own tax bill.

IFA Promotions research suggests that money will be wasted as follows:

-          264 million though fines for mis-calculations made on tax forms

-          81 million in fines for forms returned past the January 31st deadline

-          20 million incurred in surcharges and additional penalties for outstanding tax payments of more than 1000

Commenting on the issue, David Elms, Chief Executive at IFA Promotion said, For those who have missed the September deadline, the onus is now on them to ensure their forms are completed correctly before the January deadline or face substantial fines.

Elms concluded, Whilst we recognise that this form can be very confusing and can involve some complicated calculations, mistakes and fines could easily be avoided by completing the form correctly and on time.  By simply discussing your financial situation with an independent financial adviser, they can help you to gather together all the relevant information and in turn, you could save yourself a lot of money and avoid gifting the taxman another sizeable sum.

To help people take control of their finances, IFA Promotion is offering a FREE guide to tax-efficiency.  For your copy and details of four local IFAs, call the hotline on 0800 085 3250 or visit www.unbiased.co.uk

-ends-

For further information, please contact:

David Elms                                        Liz Willder / Richard Winder

CEO

IFA Promotion                                   Lansons Communications

020 7833 3131                                 020 7294 3677

david@ifap.org                                 lizw@lansons.com / richardw@lansons.com

* There are approximately 5.9 million individuals with personal wealth in excess of 100,000.  This group represents approximately 12.6% of the population, although they are responsible for the ownership of nearly 60% of the countrys wealth

** Wasted Tax 2002 was produced for IFA Promotion by Mintel and RAKM and is partly based on a specially commissioned analysis of Inland Revenue data.

Notes to Editors:

1.  Independent Financial Adviser Promotion

IFA Promotion was established in 1989 to promote the value and accessibility of independent financial advice to the public.  It represents over 10,000 firms of independent financial advisers across the UK and is sponsored by 26 leading financial institutions. In 2001, 265,000 consumers and businesses used IFA Promotion to find local independent financial advice.

IFA Promotions believes Independent financial advice should be:

        Affordable.  The option to take independent financial advice should be available, by right, to all - not just the wealthiest in society.

        Convenient.  IFAs should be available in the location of the consumers choice, wherever they live in the UK.

        Transparent.  It must be clearly transparent to consumers who is able to offer independent financial advice and who is not.

2.      Independent Financial Adviser Promotions sponsors

AMP NPI

Prudential

AXA Sun Life

Scottish Equitable Plc

Barclays Global Investors Funds

Scottish Life

Bright Grey

Scottish Mutual Assurance Plc

BUPA

Scottish Provident Institution

Canada Life

Scottish Widows Plc

Clerical Medical Investment Group

Selestia

Eagle Star

Standard Life Assurance Company

Friends Provident

Swiss Life (UK) Plc

GE Life

The Skandia Group of Companies

INVESCO Fund Managers Ltd

Tunbridge Wells Equitable Friendly Society

Legal & General

Winterthur Life UK Ltd

National Savings & Investments

Zurich Life Assurance Company

Norwich Union Life

 

 

 

 

 

 

 

 

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