TAXPAYERS in East Lancashire may be due for a refund on penalties charged by the Inland Revenue because mistakes have lead to people being wrongly fined.

Penalties are imposed on taxpayers who do not submit their self-assessment returns by the January 31 deadline.

However President of the North West Society of Chartered Accountants Ann Shaw said that there were two problem areas where the Inland Revenue have made mistakes.

Blackburn-based Mrs Shaw said: "The first, more serious problem is when the return was actually sent in on time, but transferred to another tax office, therefore missing the deadline and having a penalty issued.

"The second problem is when the return was sent in late, but the tax due was less than £100.

"In this case the fine should be reduced to the amount of tax outstanding on January 31, 2002, and if no tax was due there should be no penalty."

Chartered Accountants have been urged to complain and seek a refund under the Revenue's Code of Practice.