Most of us think of the Taxman as the one who takes a slice of our money before we even receive it, unless you are self-employed, in which case you try to pay the minimum possible whilst still complying with the legislation.

However, even the best of us can be wrong footed by the Taxman just by missing one of his deadlines.

At his disposal he has automatic interest charges to add to his original bill which can quickly increase the amount owed, at a similar rate to your overdraft charges, but these can be significantly increased by 5% surcharges (also subject to interest if paid late) which are added if the amount owed remains unpaid twenty-eight days after the due date (in most cases the 31st January). These, however, may be increased to 10% if the tax remains unpaid six months later.

These are just the dangers you face if you succeed in filing your Tax Return in time, but cannot actually afford the resulting tax bill. Your position becomes much worse if you file your Tax Return after the 31st January and you have a liability of over £100. At that point you are immediately fined £100 and a further fine of £100 follows if your Return is still outstanding six months later, with an option open to the Taxman to raise fines up to a maximum of £60 per day, if he considers it necessary.

Ignoring these deadlines is not an option!