HM Revenue & Customs (HMRC) has been launching a series of campaigns and Initiatives since last year, aimed at clawing back taxes and reducing the Treasury’s deficit.
This Initiative is part of this move to crackdown on tax dodgers. If HMRC has sent you a Self Assessment tax return or notice to complete a tax return for 2009/10 or earlier, and you have not yet taken any action, HMRC are offering you a quicker and more straightforward way to bring your tax affairs up to date. They are also more interested in those who are required to pay taxes at the higher rates- 40% and 50%.
Late filing penalties of at least £100 per return will be due, and interest and surcharges are also payable on any outstanding tax. HMRC also have the power to charge penalties of up to 100% of the tax. However, if you come forward under the Initiative, this last penalty could be reduced to nothing. So people taking part in the Initiative should receive more favourable terms.
If this applies to you and you would like to take part, you must notify HMRC and file the outstanding tax returns and pay any outstanding tax by 2 October 2012. If you would like assistance with this, please feel free to contact your local TaxAssist Accountant.
By Jo Nockels
Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.