Tax & Accounting News

Late filing penalty increases ahead?

05/11/2006

Several sources have suggested that this year's pre-Budget report will announce a large increase in the penalty for filing a tax return late.

The penalty currently stands at £100, which is seen as having little or no deterrent effect, and the speculation is that this could rise to £500 or even £1,000.

Such a step would be in line both with the increasingly hard line taken on compliance and tax avoidance in recent years, and also with the need to raise revenues.

In this particular case, however, the charge is completely avoidable, by dealing with tax matters well before any deadline. Quite apart from the penalty issue, this removes the increased pressure of dealing with tax matters at the last minute, and enables you to plan well in advance how to pay any tax liability that has arisen. So don't wait until a huge penalty looms - get up to date now!

 

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