MAKE sure you have filled in your tax returns, as HM Revenues and Customs will be issuing £85million-worth of fines over the next fortnight for late tax returns.
850,000 letters containing the £100 late-filing penalties will be sent out to those who failed to send their 2010/11 Self Assessment return to HMRC on time and the fines will only get worse, according to a local accountant.
Andrew Logan, who runs TaxAssist Accountants in Bromham Road, Bedford, said; “If you’ve been sent a tax return and haven’t completed it yet, we recommend you do this sooner rather than later.
“The penalty system has changed and whilst you will have to pay the initial fine, your costs will continue to rise until this is resolved.”
Those that haven’t submitted their return need to file within the next three months or else an additional £10 a day penalty will be added, up to a maximum of £900.
After six months, a further £300 or five per cent of the tax due will be imposed, whichever is the higher figure.
After 12 months a further £300 or 5 per cent penalty applies and in very serious cases, this could even be 100 per cent of the tax.
Andrew added; “Delaying filing your tax return means you needlessly lose a significant amount of your hard-earned income to the taxman.”
Those that have a reasonable excuse for failing to submit their tax returns, such as family illness or bereavement, or a delay in HMRC sending out an online activation code, should appeal against the fines.
For more information contact Joss Rankin on 0113 307 0113 or joss.rankin@mcgpr.co.uk