Consultation on penalty proposals drawing to close

Taxpayers in the UK have little time left to express their opinions on harsher penalties for filing late tax returns.

Her Majesty's Revenue and Customs' (HRMC) consultation on the proposed penalties will close on 11 September.

The new fines that taxpayers could face include up to 100% of the tax owed and increased fixed penalty notices of more than £100.

Roy Maugham, tax partner at UHY Hacker Young, said: "Allowing HMRC to set penalties for late filing up to 100% of the tax owed is quite extraordinary when you consider that 100% penalties are currently levied in fraud cases, which involve deliberate deception."

Mr Maugham also added that under the new structures, it would only be fair that HMRC pays up to 100% extra on delays to refunds on overpaid tax.

HMRC's proposal document also suggests punishing repeatedly late tax payers with further increases in fines and penalties.

In other news, claimants for VAT refunds between 1973 and 1997 have until 31 March 2009 to file their claims with HMRC.