Self-assessment complexity set to increase penalties
Longer and more complicated self-assessment forms for the new tax year could substantially increase the £1bn of penalties already charged to late payers.
According to virtuallyanywhere.co.uk, the online tax advisers more than 3 million tax payers were penalised to the tune of £1bn this year for failure to file tax returns and pay tax on time.
But the figure is set to increase because of the increasing complexity of self-assessment forms.
Peter Black, a virutallyanywhere tax adviser, said: ‘The levels of non-payment within the self-assessment system have risen over the last few years confirming that the self-assessment regime isn’t working.
‘Self-assessment was introduced to improve efficiency qnd help streamline the Revenue and the UK tax system in general. It is becoming increasingly obvious, however, that it is far too complicated for most people. The Inland Revenue’s systems simply cannot cope with the problems that his is causing.’