Therefore no one should be under any illusions that the state, in order to maintain its existence, will do all it can to extract every last penny from the taxpayers.
ICAS have issued a timely warning concerning the aggressive new penalty regime being applied by HMRC as from October.
Instant £100 fines will be applied for even a one day delay in filing, together with additional fines for lengthier delays.
"If people are even one day late in filing their paper self-assessment tax form they will be hit with an instant £100 fine. After another three months an additional fine of £10 a day is added for each day overdue, up to a maximum of £900. Tougher fines are added if passing the six month or one year mark; the larger of £300 or five per cent of the tax due.
From the 31 January next year the same will apply for people who file their form online. So a return due by the end of January 2012 but not filed until 5 August 2012 would attract £1,300 or higher in fines.
According to ICAS, the professional body of Chartered Accountants (CAs), since self-assessment was introduced in 1997, nearly one million people each year have been late in filing their return. Many people delay submitting their return for longer than 12 months. Until now so long as the person had paid all the tax due no penalty could be charged by HMRC.
Derek Allen, Director of Tax at ICAS, said:
'We are concerned that most people will not yet be aware of these new penalties as they have not been widely communicated. Based on the last decade of experience, at least one million people could find themselves liable to the additional penalties.'
The new penalties could also see taxpayers losing out on tax rebates from HMRC. This is particularly relevant for self- employed in the construction sector, where tax is often deducted initially by the contractors. Individuals are then due repayments after calculation once they lodge a return. However, under the new rules if the return is late the repayment owed will be a lot less because it has been used by penalties."
Suck it up people, the country is broke and the political "elite" have no intention of removing their snouts from the trough.
Ker Farking Ching!
Tax does have to be taxing.
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