innocent mistakes on self-assessment tax returns may be punished

[BrilloPad]

HMRC investigations into savers' tax affairs double - Telegraph

According to HMRC we are all guilty.

No doubt Mrs Miggins who neglected to tell them about the 1p interest she got on her post office savings will be sent to the gas chambers. Its only fair.

[centurian]

I'm not convinced many of these mistakes are such as innocent as many make out. If you're a higher rate taxpayer, it's pretty simple knowing that you need to declare bank interest etc. If "doctors, lawyers and teachers" are incapable of getting this, they are not competent enough to do their day job.

I knew someone (a "middle class professional") that just didn't bother declaring his bank interest at all - which is simple evasion - however, he already had his "oh, blimey, I didn't realise I had to declare that - the bank statement said it was already taxed" excuse lined up if he was ever caught.

[NickFitz]

"Tax experts warned…" - well, it was very nice of them to do that. An example of selfless service for the benefit of the wider public, offering helpful warnings with no thought of drumming up business for themselves.

Well done, tax experts!

[mudskipper]

There are large swathes of higher rate tax payers in PAYE employment who never ever fill out a tax return - their interest presumably isn't taxed. Are they going to make every higher rate payer fill out a return?

[barrydidit]

There are large swathes of higher rate tax payers in PAYE employment who never ever fill out a tax return - their interest presumably isn't taxed. Are they going to make every higher rate payer fill out a return?

They ought to do because according to these guys

Even if the amount of income is very small, they have a responsibility to notify HMRC and then complete a tax return once told to do so.

If I were Hector, i'd start hassling anyone who paid 40% paye and hadn't sent in a SA return. Even if they got a penny a month on their current account, it's a £100 fine for not filling the form in. Got to be creative in these tough times

[DodgyAgent]

There is a simple answer. stop taxing people to oblivion and start spending the tax efficiently and effectively.

Most tax inspectors retire in their 50s with state pensions

[vetran]

Most tax inspectors retire in their 50s with state pensions

Thats because they can't stand the pressure of being bent over by the Big boys and their decent accountants.

I know they have to appear strict but frankly it seems like scare tactics.

[BrilloPad]

There are large swathes of higher rate tax payers in PAYE employment who never ever fill out a tax return - their interest presumably isn't taxed. Are they going to make every higher rate payer fill out a return?

Interesting comment. MrsBP gets to do a tax return every year as she was director of my limited for 2 years. 5 years ago I went permie and she has not earned anything since (she stays at home to wash my socks) - but I have to fill in a form every year. Total waste of time.

Any higher rate taxpayer who does earn interest should be requesting a tax form. Not sure what the penalty for not doing one is - is it burning at the stake or hanging?

[meridian]

Thats because they can't stand the pressure of being bent over by the Big boys and their decent accountants.

I know they have to appear strict but frankly it seems like scare tactics.

I was a tax inspector myself, nearly 2 decades ago. The inspections with the big boys and their accountants were the most interesting, as you could argue statutes, case law, and there was a mutual respect in many cases. Big money in some cases, but they generally took months (and sometimes years) to resolve.

I left mainly because of the govt directive that we had to focus on the "mom and pop" run businesses as they were quick and showed the public our presence.

It's not about "pressure" (they're civil servants after all...), it's about targets and KPIs.

[BrilloPad]

This comes under the heading of defensive tactics. By not declaring your 10p in interest to the tax man they can use this trivial oversight to launch a full blown investigation. It's well known and common practice on their part for a number of years. You can argue all you like, but that is the fact.

That is true. But if you owe nothing in tax you are fine. MrsBP once got threatened with £60/day fine. Acoountant sorted it but said as she owed nothing there was never any chance of the fine going ahead.