Connecting to LinkedIn...


Many people cutting HMRC tax deadline fine

A recent report from online cloud accountancy, Boox, revealed there is a frightening lack of financial awareness amongst many workers who will be facing two long days trying to file their returns on time. It found:

&middot         20 million British workers don’t know how much tax they pay

&middot         36% of UK workers don’t understand the current rate of VAT

&middot         59% don’t know the salary level at which 20% tax rate is payable

&middot         Only 1 in 10 know the percentage of their salary that goes towards NI contributions

An infogrpahic on the main findings can be found here too.

Many self-employed and freelance workers are also facing similar stress when filing their returns.

As seen by the most recent ONS figures, the UK’s self-employed and freelance workers have risen by 147,000 since June-November of last year. This means now the UK has 4.3 million self-employed workers. The Boox report also found that these workers are similarly unaware of their tax obligations as other UK workers. It found:

33% of freelancers are not aware of the current VAT rate

Nearly two thirds (64%) either don’t know or incorrectly guessed the salary level at which the 20% tax rate is payable

More than nine in ten do not know the percentage rate of Class 4 NICs payable on taxable profit

For all the workers struggling to file their returns, stiff fines await them.

Workers who miss the deadline face a &pound100 penalty and HMRC dished out fines to 850,000 people in 2012, incurring &pound85million in penalties. If workers miss the 31st January deadline, the fine will be &pound10 per day for the next 90 days. This means if a worker is three months late in filing and even if they owe no tax they’ll have to pay a fine of &pound1,000.


Articles similar to

Articles similar to