TaxPersonal TaxTaxpayers foot bill for complex forms

Taxpayers foot bill for complex forms

Taxpayers may end up paying extra because calculating their tax bill is so complicated, according to mid-tier firm PKF.

With the deadline looming as well as the threat of a £100 penalty – plus a 5% surcharge added on to any amount outstanding – tax payers could end up paying hundreds of extra pounds to the Revenue this year.

According to the Revenue’s recent annual report, calculations are so complicated that even they gets it wrong 20% of the time. ‘Tax calculation guides can be up to 32 pages long depending on the type of level of your income,’ said PKF.

Despite this, getting the calculation wrong is no excuse for the Revenue. It considers late payment of taxes as an usecured loan to the taxpayer.

And the Revenue, which re-named its ‘Collector of Taxes’ branch to the more friendly-sounding ‘Receivables Management Service’ is getting stricter on tax collection, said PKF.

This year they will enforce collection of taxes more vigorously by telephone through a specialist call centre and, if the debt is not paid as promised, they will begin a formal recovery process.

PKF’s director of tax, Peter Penneycard, commented: ‘Those with a financial hangover from Christmas should think twice before delaying tax payments.

‘Inland Revenue interest and surcharges could end up costing more than a commercial loan and be a lot more stressful.’

Related Articles

Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

Personal Tax Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

3w Alia Shoaib, Reporter
Rent-a-room relief – the survey says…

Personal Tax Rent-a-room relief – the survey says…

2m Helen Thornley, ATT Technical Officer
What should the OTS prioritise in its review of inheritance tax?

Personal Tax What should the OTS prioritise in its review of inheritance tax?

4m Alia Shoaib, Reporter
LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

5m Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

6m Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

7m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

7m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

9m Alia Shoaib, Reporter