Self-employed taxpayers who missed today's deadline for paying HM Revenue & Customs will have to fork out almost half a billion pounds in fines.

Almost one in ten self-assessment taxpayers, about 890,000 people, are expected to submit the form late or make a mistake in calculating how much tax they owe.

IFA promotion, which supports the work of independent financial advisers, said the figure would be slightly higher than the estimated 879,000 who failed to make the deadline last year.

It claimed people would be fined about £89 million for failing to return their form and the extra tax before today's deadline, as well as paying £308 million in fines for miscalculations.

Another £21 million will be paid out in surcharges for unpaid tax from previous years.

Tony Catt, an independent financial advisor in Kingsway, Hove, said: "The main problem is being afraid of the forms themselves.

"My form was delivered last April and I promptly returned it last Thursday.

"Filling them in requires a fair amount of time and expertise, although they are supposed to be relatively simple.

"They are not simple but it is difficult to see how they could be made any easier really.

"You need to be organised and keep your receipts tidy, otherwise you will not know where to begin.

"I would suggest seeing an accountant or getting professional help.

"The fine is justified, especially if it means reminders being sent out and extra work for the Revenue.

"How long do people need? I suspect some people would miss the deadline no matter what."

The Revenue said about one million of the 9.5 million people who complete self-assessment tax returns fail to get their forms and owed tax in on time each year.

People who fail to meet the deadline face an automatic £100 fine, as well as having to pay interest on the tax they owe at 6.5 per cent.

If they have still not submitted their forms and tax six months later, they will receive another £100 fine, while persistent offenders can face a fine of up to £60 a day.

Last year the Revenue started sending out shortened tax return forms of just four pages to people with simple affairs.

These are designed to be completed by September 30 so the Revenue calculates how much tax people owe.

A spokeswoman for Revenue said: "This is the tenth year of self-assessment and the date shouldn't be a surprise.

"If you do miss it, you do get a penalty and have to pay interest on any tax not paid."

David Elms, chief executive at IFA promotion, said: "To see that more money is set to be gifted to the taxman this year through fines for late returns and miscalculations is disappointing as it is entirely unnecessary.

"All people need is a little forward planning to ensure that forms are completed correctly ahead of the deadline."

Tuesday, January 31, 2006