A new study suggests that almost one in five people who have filed a tax return with HM Revenue & Customs (HMRC) fear that they may have made a mistake which could cost them dear.
The research, which comes from consumer magazine Which?, found that 19 per cent of self-assessment taxpayers feared hefty fines or financial losses due their inability to fully understand or correctly fill in their tax return.
For those who have not yet completed their online tax returns for 2016/17, which are due no later than midnight on 31 January 2017, the news highlights the importance of consulting tax experts for advice – to ensure that your return is tax-efficient, correct and fully compliant.
Taxpayers are also reminded that returns filed later than the 31 January deadline could lead to serious fines and penalties, beginning with a £100 automatic fine applied to all online tax returns if they are late by just one day.
After three months, any late returns will incur a penalty of £10 per day for every day that the tax is due, up to a maximum of 90 days and a maximum of £900 – plus additional interest on the outstanding tax.
If a return is late by six months, a fine of £300 or 5 per cent of the tax due; whichever is higher, will then apply, whereas if your return is 12 months late, an additional £300 or 5 per cent fine of the tax due will added to your final bill.