Late Filers Could Face Higher Penalties
HM Revenue and Customs considers ways to reduce outstanding tax returns
23rd June 2005
The penalties for late filing of a tax return could be increased, as HM Revenue and Customs consider ways to reduce the estimated £1.1bn in outstanding taxes owed under the self assessment system.
Although 90% of tax returns were filed before the deadline of Januaury 31st in the last two years, this falls short of the taxman's target of 93%.
Options being considered include replacing the standard £100 penalty for late filing with a fine proportional to the amount of tax owed, as those with large tax bills don't necessarily find the flat rate penalty a sufficiently severe deterrent.
An increased use of the £60 daily charge for late returns is also under consideration, especially for the 'significant' number of people with 2 or more outstanding returns.
Less punitive proposals include simplifying the tax return forms, increasing awareness of charges for late submission, and increasing the tax department's efficiency to quickly process filed returns.
Read More: Money Guardian
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More on Self Assessment : Two Weeks Grace for Online Tax Returns (News, 01/02/2005), Self Assessment Deadline Today (News, 31/01/2005) |
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