UK taxpayers are losing out on millions of pounds each year due to errors being made in record-keeping and tax self-assessment forms, new research claims.

According to a study conducted by IFA promotion, making errors and missing the self-assessment deadlines costs individuals in the UK a total of £319 million a year in related costs.

On top of this, the report estimated that some £487 million will be paid out in fines as a result of failing to adequately record details on income and tax-related finances, with individuals in danger of being penalised to the tune of £3,000 each for what essentially amounts to poor record keeping.

Commenting on the findings, IFA Promotion's chief executive David Elms said that sticking to the Inland Revenue's deadlines for self-assessment could reduce the chances of paying fines, as could employing a financial adviser to deal with the tax returns.

For Tax Returns received before the end of September, the Inland Revenue calculates the amount of tax payable itself.