Tax-geared penalties could hit over a million taxpayers

New plans by Revenue & Customs introducing tax-geared penalties for taxpayers who are late filing their self-assessment tax-returns, could hit over one million Brits according to research by Unbiased.co.uk. Under the new plans penalties could up to 100% of the outstanding tax bill, adding a substantial amount of money to the tax penalties already incurred under the current system.

This year, taxpayers are already set waste an unnecessary £479 million in fines as a result of late tax form returns, miscalculations and surcharges on unpaid tax, according to research by Unbiased.co.uk, the website promoting the benefits of independent financial advice.

Over £102 million of tax wastage is incurred through late returns of self-assessment forms, in addition to that £62 million tax fines are a result of miscalculations and a further £315 million are paid as surcharges on unpaid tax.

David Elms, chief executive of Unbiased.co.uk, comments: "The government has always had stringent rules when it comes to late returns of self-assessment tax forms and it looks like these rules will be even stricter if this proposal is going to come into effect. Missing the HMRC's deadlines is certainly not going to be something people should do lightly. Tax wastage is one of the biggest areas where people can save money and sticking to the self-assessment tax return deadline is an easy way to ensure you are not gifting unnecessary money to the taxman.

"Tax can be a confusing topic but for help on your tax liability and all your other financial matters, you should go and see an independent financial adviser to make sure you are making the most of your finances."

To help people take control of their finances Unbiased.co.uk offers an online guide to reducing tax waste as well as tips to reducing tax waste and an online tax wastage calculator. For online information and details of local IFAs, visit unbiased.co.uk/taketaxaction/