LITRG - February can be taxing

Date: 3rd February 2010

February is not a quiet month in the tax year despite the end of the "January deadline rush".

This is the view of the Low Income Tax Reform Group (LITRG), which said this month could still provide a number of tax issues as it is when HM Revenue & Customs (HMRC) begins its penalty procedures.

The group said taxpayers who missed the January 31st deadline for online tax return will receive penalties of up to £100 this month.

However, the organisation has advised that those who feel they have been issued a penalty unfairly could have grounds to appeal.

Current rules specify that if tax was paid in full for the 2008-09 tax year by the deadline, or no tax was due, workers may be able to escape the fines.

LITRG also explained that if the amount owed is less than £100, then the HMRC should adjust the penalty accordingly.

HMRC announced earlier this week that some 6.4 million taxpayers had filed their self-assessment returns using the department's online service this year.