London, UK (PRWEB) January 02, 2013
According to figures from the law firm Pinsent Masons, HM Revenue & Customs issued fines worth an estimated £958m by August 1 when the new penalties imposed for late Tax Returns for the 2010/11 tax year hit.
RIFT tax specialists are looking to help those registered under the CIS (Construction Industry Scheme) or PAYE (Pay As You Earn) schemes, offering expert advice on correctly filing their Tax Return. This announcement comes as RIFT have first-hand experience of the financial problems it’s clients have suffered since HMRC’s decision to raise dramatically the fines normally levied against those who miss the January deadline. The government have been heavily criticised for raising the average total of fines charged for late payment from £250 million in the tax year 2009/2010 to an estimated £1 billion (£958 million) for 2010/11.
Those working in the construction industries who are CIS or PAYE workers are often faced with the limited advice on offer when independently filing their Tax Returns, and as such are at risk of substantial fines going forward. Advice from HMRC is often thought to be hard to obtain and not comprehensive enough. For example, many CIS workers are not aware that they are by law required to fill in a Tax Return form. Those switching between CIS and PAYE status due to their line of work (the construction industry often employs sub contracted individuals and the tax status of people in the industry changes frequently dependent on their employment arrangements) can also run into difficulties.
Tax Returns are among Briton’s least favourite chores, with a staggering 500,000 people this year putting off their tax affairs until after the deadline had passed (bbc.co.uk/news/business-19256666). This is set to become an expensive trend. Though the number of people being fined has not dramatically increased, the charges levied against late payees have risen demonstrably (thesundaytimes.co.uk/sto/business/money/Tax/article1080800.ece). What used to be a standard £100 penalty for late filing was increased for all those submitting their 2010/11 return late. The £100 which was charged as a penalty in 2009/10 is still charged for late filing even if you are a day late. But now after three months if you’ve still not completed your Tax Return you will start incurring fines of £10 per day for three months (£900), this is then followed by a minimum £300 fine at 6 months and if you’ve still not submitted at 12 months another £300 minimum is added to your bill. If you are a year late in submitting then you could quite feasibly owe HMRC more than £1600 (hmrc.gov.uk/sa/deadlines-penalties.htm).
In 2009/10 if you were late in filing your Tax Return, but then you eventually submitted it and you were due a refund all penalties were reduced to zero. From the 2010/11 year onwards, the penalties that HMRC impose cannot be reduced.
RIFT offer dedicated support to those setting up as CIS self-employed and those with PAYE status, providing straight-forward guidance on Tax Return procedures. RIFT are the only UK tax specialist to offer their clients a 100% guarantee and are proud to report a 91.5% success rate in securing tax refunds on their clients behalf.
Operations director Kieran Brogan says:
“We’re advising all of our clients to contact us in January to check if they need to file a Tax Return for the 2011/2012 year and, by asking a few basic questions, we can tell them if they do need to fill in a Tax Return or not.”
Contact RIFT tax refunds today via their website or call 01233 628648 to receive expert advice on filing a Tax Return next year.
About RIFT UK:
RIFT were established in 1999 specifically to help those in the construction industry with their tax procedures. They pride themselves on being ‘the leading Tax Refund Agency for quantity and quality.’ Since then, they have expanded to work across industries with successful case histories in working with people from every walk of life, including migrant workers. In 2006 RIFT entered the unique niche of helping professional sportsmen and women. RIFT UK employ Chartered Accountants amongst their 85 personnel and operate from a base in Ashford, Kent, with further representation in Chester, Doncaster, Glasgow, Belfast and Dublin.