UK pays 1.1 billion price of tax return delays and mistakes
Left it too late for the taxman to do your sums?
Prepare your finances with an IFA to simplify the form-filling
Over 1.1 billion 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 to consumers.
The startling findings highlight difficulties faced by taxpayers attempting to calculate their tax bill. Since self-assessment's inception in 1997, there has been a steady rise in the number of late returns, with 971,000 deadline defaulters last year alone. This upward trend is set to continue following the issue of increasingly bulky and complicated set of forms and 'guidance' notes from the Revenue.
"It's no surprise that people experience problems filling out the 29-page, 438 box form, since it deals with taxable income from a variety of sources and can involve some pretty mind-boggling calculations," commented IFA Promotion's David Elms. "However, the onus is now squarely on those who've not yet tackled the forms to ensure correct completion before the January deadline or face substantial fines."
IFA Promotion's research suggests that money will be lost as follows:
- 975 million through fines for mis-calculations made on tax forms;
- 98 million in fines for forms returned past the January 31st deadline;
- 55 million incurred in surcharges and additional penalties for outstanding tax payments of more than 1000.
Elms concluded, "These fines could be avoided by completing the form correctly and on time - easier said than done I know, but by sitting down with an IFA to make financial preparations you could save yourself a lot of money, time and aggravation when it comes to filling in your tax return."
To help put your financial planning in order on time to fill in your forms contact your IFA or call the IFA Promotion hotline number on 0800 085 3250 or visit the website at www.unbiased.co.uk for details of local IFAs. Callers can also request a copy of IFA Promotion's free guide - Thinking about your tax efficiency?
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For further information please contact:
| David Elms CEO IFA Promotion 020 7833 3131 | or | Richard Winder/ Liz Willder Lansons Communications 020 7490 8828 |
* For detailed enquiries on the Wasted Tax investigation content, please contact: Paul Hersey Research Analysis and Knowledge Management (RAKM) 01737 773 497
For details of IFAs who can comment on taxation issues or for case studies, call the IFA Promotion Press Services hotline on 020 7294 3682.
Notes to Editors
1. Independent Financial Adviser Promotion
Independent Financial Adviser Promotion Ltd. was established in 1989 to promote the value and accessibility of independent financial advice to the public. It represents nearly 10,000 firms of independent financial advisers across the UK and is sponsored by 32 leading financial institutions.
IFA Promotion's central belief is:
"Consumers have a right to financial advice that is independent of the providers of financial products - i.e. independent financial advice."
Furthermore 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 consumer's 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.
| AXA Sun Life Barclays Global Investors Funds BUPA Canada Life Clerical Medical Investment Group Dresdner RCM Funds (UK) Ltd. Eagle Star Family Assurance Friendly Society Ltd Friends Provident INVESCO Fund Managers Ltd Investec Asset Management Legal & General Merrill Lynch Investment Managers National Mutual National Savings Norwich Union Life | NPI |