UK gets set to gift 1.1 billion in fines for late or mis-calculated tax returns
Review your finances with an IFA to simplify the form-filling
As this years self-assessment deadline looms (31st January), research from IFA Promotion*, the organisation promoting the benefits of independent financial advice, reveals that UK taxpayers will gift over 1.1 billion to the taxman in fines this year, as a result of late or mis-calculated tax returns.
The startling findings highlight 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, 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.
Its 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 Promotions David Elms. However, the onus is now squarely on those whove not yet tackled the forms to ensure correct completion before the January deadline.
IFA Promotions 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.
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Elms concluded, People risk facing costly fines through last minute panicking or, worse still, further procrastination. An IFA can help put your finances in order, saving time and aggravation when it comes to filling in your tax return.
To help put your financial planning in order in 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 Promotions free guide - Thinking about your tax efficiency?
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For further information, please contact: | ||
David Elms | or | Richard Winder |
CEO |
| Lansons Communications |
Independent Financial Adviser Promotion |
| Tel: 020 7490 8828 |
Tel: 020 7833 3131 |
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* For detailed enquiries on the Wasted Tax investigation content, please contact:
Paul HerseyResearch 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 Editors1. 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 over 10,000 firms of independent financial advisers across the UK and is sponsored by 28 leading financial institutions.
2. Independent Financial Adviser Promotions sponsors
AXA Sun Life | NPI |
Barclays Global Investors Funds | Prudential |
BUPA | Scottish Equitable Plc |
Canada Life | Scottish Life |
Clerical Medical Investment Group | Scottish Mutual Assurance Plc |
Dresdner RCM Funds (UK) Ltd. | Scottish Provident Institution |
Eagle Star | Scottish Widows Plc |
Family Assurance Friendly Society Ltd | Selestia |
Friends Provident | Standard Life Assurance Company |
INVESCO Fund Managers Ltd | Swiss Life (UK) Plc |
Legal & General | The Skandia Group of Companies |
National Mutual | Tunbridge Wells Equitable Friendly Society |
National Savings | Winterthur Life UK Ltd |
Norwich Union Life | Zurich Life Assurance Company |