Firstly, get your tax return drafted as quickly as possible. You could already be facing late filing penalties of £1,300 or more:
- £100 – first automatic late filing penalty
- £900 – daily penalties of £10 per day that started on 1st May 2013
- £300 or 5% of the tax due (whichever is higher) – which was issued on 1st August 2013
Not to mention interest and surcharges on any outstanding tax, which is also now late.
But all is not lost. HM Revenue & Customs (HMRC) has recently launched the ‘My Tax Return Catch Up’ campaign which offers taxpayers with outstanding 2011/12 tax returns the opportunity to come forward voluntarily- in exchange for their best possible terms. You must inform HMRC you want to use the campaign and settle any outstanding tax liabilities by 15th October 2013.
Soon after the Campaign closes, HMRC will use their extensive powers to identify those who have failed to come forward. The penalties they face will be more severe and HMRC may even pursue a criminal investigation in some cases. So the advice would always be to come forward first; don’t wait for HMRC to find you.
Your local TaxAssist Accountant would be happy to get your affairs up to date and liaise with HMRC on your behalf if you think the Campaign is right for you. Please contact us to be put in touch with your local office.
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.