And Peter Kay said people who should have completed a self-assessment tax return but haven't will be landed with a £100 fine.

"Interest will be charged immediately on unpaid tax with a surcharge of five per cent on tax still unpaid after 28 days.

"This is just the start. Penalties and surcharges can mount dramatically if payment is delayed."

The deadline for the completion of the new style tax form was last Saturday.

But around two million self-employed people, pensioners and higher rate taxpayers are expected to be fined.

The problem has been made worse because some taxpayers have not received a demand from the Inland Revenue.

This, however, cannot be used as an excuse for not paying the tax on time.

"Taxpayers are now facing large bills which could inflict damage to cash flows in business," added Mr Kay, who runs Kay Chartered Accountants on Station Road, Northwich.

"This need never have happened if they had been prepared."

Mr Kay said some tax bills could still be reduced - but only if people sorted out their tax in time for the start of the financial year in April.

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