Small business urged to declare any offshore tax havens

Date: 2nd November 2009

HM Revenue and Customs (HMRC) has unveiled a new video warning self-employed businesses working as sole traders or through limited companies of the consequences of avoiding paying tax.

According to the tax authority, small businesses which avoid coming forward and declaring any offshore havens under the New Disclosure Opportunity (NDO) will face severe fines and potential criminal prosecution.

Dave Hartnett, HMRC's permanent secretary for tax, said: "For some people, offshore bank accounts and tax havens typically conjure up images of exotic and far away places, well out of the reach of the taxman at home.

"Well, life's just not like that any more. And here's a blunt message from HMRC: times have changed. The taxman now has more powers and more information."

He added that small businesses who think they can get away without making any notification of a declaration by November 30th are "burying their head in the sand".

Under the legislation, businesses need to submit their tax disclosure in paper by January 31st.

Businesses making a declaration online must do so by March 31st.