Late filing brings bonus for taxman

Tax payers are set to gift the taxman an unnecessary £412 million this year in fines generated by late returns, miscalculations and surcharges on unpaid tax, according to research from IFA Promotion.

Failure to get forms in by the 31st January deadline incurs an initial £100 late payment charge, as well as the potential £60 a day additional fine threatened for the first time this year. If the return is still late in July, a further penalty will be added additional to the daily charges.

However, some late filers were given a last minute reprieve and a two week extension due to problems with the Revenue's computer filing system.

IFA Promotion’s research suggests that money will be wasted as follows:

• £88 million in fines for forms returned past the January 31st deadline
  
• £296 million through fines for mis-calculations made on tax forms
  
• £28 million in surcharges for unpaid tax from previous years.