Weybridge-based firm of accountants, TWP Accounting, is advising taxpayers to ensure they seek professional advice when completing tax returns to avoid being hit with penalties, in light of stricter rules implemented by HM Revenue and Customs (HMRC).
The new regime means that taxpayers can now incur penalties for inaccuracies in tax returns and other documentation, as well as for underpaying, or making late tax payments.
This was highlighted by a recent case in which a taxpayer tried to reclaim £3,000 in overpaid tax, but HMRC calculated that he was owed only £1,000 and fined him £1,400 for the inaccurate calculation.
Tax experts are concerned that the latest regime is unnecessarily harsh, and that it is yet another way in which HMRC is trying to boost funds.
However, a HMRC spokesperson stressed that the regime is in place simply to ensure that everyone pays the right amount of tax and claim only what they are owed. They also pointed out that those who feel they been treated unfairly can appeal at an independent Tribunal.
Mike Dawes, TWP partner, commented: “The calculation of a rebate can be a complex and confusing task, and it is vital to consult a professional for sound and trustworthy guidance.
“This case highlights the need for taxpayers to seek expert advice to ensure they submit accurate rebate claims so as to avoid being hit with fines.”
For more information about TWP, or for advice about your tax issues, please call 01932 704700.