HMRC is 'ratcheting up the pressure'

Date: 25th October 2011

Taxpayers could be encouraged to seek the advice of a specialist accountancy service following the recent comments of one expert.

With time quickly running out for people to file their tax returns on time, the Chartered Institute of Taxation (CIOT) has warned that HM Revenue & Customs (HMRC) is "ratcheting up the pressure".

John Whiting, tax policy director at the CIOT, said that a number of people will get caught out by changes to the penalty system.

Penalties used to be waived for late returns when the tax was paid on time, however, this is no longer the case.

"This is ratcheting up the pressure to get your return in on time. HMRC's preferred method, which is in a sense the real deadline, is that you do it electronically by January 31st 2011," he said.

"I suspect this will lead a few more people to file it electronically, and it'll lead a few more people to be penalised. I'm quite sure there will be a good number who will file late, but will think they can still pay the tax on time, and they'll trip up."

Posted by Emily Smith