Are the tax services going soft?
It has been revealed that more than half of taxpayers who complained about penalties for late tax returns have had their fines reduced or cancelled. Figures released by HM Revenue and Customs show that between 1 April 2009 and 31 December 2009 a total of 21,000 taxpayers disputed fines issued by the department. Around 80% of these were disputing fines for late payment and more than half had their fines cancelled or reduced after producing evidence to support their claim.
There are a number of reasons why fines issued as a consequence of late tax returns can be amended which include the death of a partner, documents lost through fire or theft and a life-threatening illness although the number of fines adjusted does seem to be rather high compared to years gone by. The UK government has spent millions upon millions of pounds on a new online tax return system which appears to be on the whole working very well. However, many taxpayers still missed the deadline despite the numerous adverts in the press and on the TV.
There is no doubt that the online tax return system is proving very popular as taxpayers have a number of extra months to provide the information required, compared to those who use the paper system.
Share this..
Related stories
Government backtracks on national insurance argument
The UK government, and especially Lord Mandelson, have this weekend backtracked on a number of allegations made against the business community in the UK. Lord Mandelson had been highly critical of many business leaders who signed a letter in support of the Conservative party's intention to reduce the proposed national insurance tax increase. The government appeared to suggest that business leaders...
Read MoreGovernment Destroying Tax Records After Just 2 Years
In a move which has seen many people hit with bogus claims by HM Revenue & Customs (HMRC) it has been confirmed that HMRC is destroying vital tax records after just 2 years in storage. This has seen a number of tax payers hit with large repayment requests years down the line, unable to back up their case because the documentation has been destroyed. With no evidence to prove mistakes have happed...
Read MoreWill Gordon Brown now go ahead with his own financial crisis responsibility fee?
With news that the US government is pushing through a financial crisis responsibility fee which could cost some of the largest US banks in the region of $2 billion a year, there is speculation that the UK government could follow suit and announce its own punitive measures. While the situation in the US is far worse than that in the UK, with the US authorities estimated to have lost $117 billion fr...
Read MoreAlistair Darling's hands tied in run up to general election
Yesterday's news that Alistair Darling agreed to cut planned business tax rate rises from 5% to 2% (with the additional 3% staggered over the next two years) perfectly illustrates the difficult situation and UK government is in today. The need to both maintain and improve tax streams in the short term coupled together with the need to keep the UK public onside as we approach the next general elect...
Read MoreCrooks target online tax system
The HMRC has today revealed a new strategy which criminal gangs are using to arrange for tax rebates to be paid to themselves. While no figures were given with regards to the number of attempted frauds and amount of money actually paid out, it must be significant to prompt HM Revenue and Customs to issue such a warning about the system. So what exactly is going on?
The issue relates...