Tax lottery

Posted: 19th January 2012

Tax returnThe Government has floated the wacky idea of running a lottery – with a £100,000 prize – for taxpayers who submit their tax returns on time.

Given that penalties of up to £1,600 can accrue for late filing of tax returns, taxpayers struggling to meet the 31 January filing deadline may soon have an additional incentive to file their returns promptly.

It is expected that such a scheme would encourage people to file their returns earlier, leading to a reduction in the logjam faced by HM Revenue and Customs in January each year as taxpayers attempt to get their returns in ‘under the wire’.

Not all are so tardy. It is reported that more than 100 taxpayers filed their 2010/11 returns online on 25 December!