Categorized | news

1 Million Are Innocent, But Still Chased Over LTR

LTR, or late tax returns for those of you who don’t know…well, it has just emerged that around 1 million have been WRONGFULLY accused of being late.

Late sending those tax returns in according to the HMRC, which then led them to fine each of these people hundreds of pounds.

The exact figure wrongfully accused of LTR is 963,000 which is not that far away from a million, and no doubt resulted in a lot of people wondering exactly what was going on.

What appeared to be happening is that many of these million were unnecessarily registered for SA, or self assessment for those of you not down with the lingo. The HMRC no doubt were about to shout bingo, although once the truth came out it wasn’t what they expected at all.

Of course, if you are unnecessarily registered for SA, then filing a tax return won’t be something you even think about, especially if you are unaware of the fact HMRC are expecting a form from you in the post. I’m sure many these people were surprised to get a LTR payment demand in the post.

As we’ve heard right here on this very blog, HMRC don’t mess around when it comes to getting money they are owed, and it even sometimes results in debt collection agencies being called in to recover the money. Not something you want to happen is it? It does though, unfortunately.

It seems that many of these “rogue” people in the governments system had not filed tax returns for 3 years or more and were no longer self employed. Perhaps many of them were former contractors, freelancers and small business owners? I’m sure they were. Many of them retired, no doubt.

Anyway, the HMRC are “in the know” with what is going on here, and so far have taken 200,000 of the 1 million out of their system and wiped clean the slate in regards to LTR fines and what not.

I’m sure this will all get sorted out quickly, and that no more innocent people will have to pay fines or do some time, so to speak. With the advent of digital tax systems on the government websites, it should stop this kind of thing in its tracks.

What I will say, is that every contractor and freelancer out there who is registered for SA and does have the possibility of a LTR just around the corner if they don’t make the deadline, then what you need to do is find yourself a decent contractor accountant who can handle all of this for you.

Be Sociable, Share!

Leave a Reply

You must be logged in to post a comment.

  • Switch Accountants for FREE

    Switch Accountants for FREEAt K&B Accountancy Group we have introduced a simple and straightforward approach to changing accountants. We’re offering contractors, consultants and freelancers the opportunity to switch to K&B Accountancy Group for FREE without the need to pay for any ‘catch up’ or retrospective accountancy fees for the previous year’s accounts and corporation tax return* *T&Cs apply

our top 5 twitter posts

twitter

contractor accountants

contractoraccts



twitter Join the conversation
Free Telephone Advice