Latest figures show that errors among taxpayers when completing their returns result in billions of pounds being lost each year.
The latest tax gap statistics from HMRC show that £7.1 billion a year is lost to error, with a further £14.6 billion lost to failure to take reasonable care.
General Lack of Awareness of Tax
The Association of Taxation Technicians (ATT) believes that confusion over tax rules and the complexity of the UK tax system are contributing to mistakes when filling out returns.
Emma Rawson, ATT Director of Public Policy, commented, “While the reasons for these errors and failures will be manifold, it’s not unreasonable to suppose that general lack of awareness of the tax rules is a contributory factor.”
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Emma added, “This lack of understanding makes it hard for people to know whether their tax position is correct. This can lead to errors, costly mistakes, and stress if HMRC do get in touch. Plus, the anxiety around getting things right can itself become a barrier to taking steps towards compliance.”
An accountant can help to relieve this administrative burden and ensure that you’re filing your tax return correctly.
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