Despite the rather tedious title used by HMRC, there is an important point to this campaign. HMRC are
offering taxpayers the chance to bring their tax affairs up to date with
favourable terms for those who have failed to file tax returns, provided the
taxpayer signs up to this campaign.
Normally interest and penalties are levied in such
cases and the maximum tax geared
penalty is 100% of the tax ultimately due,
or 200% of the tax ultimately due in the case of offshore issues (this
applies for 2011/12). Higher penalties
are generally due when there is a lack of openness and willingness to work with
HMRC to determine the correct amount of tax due on an individual’s income or
gains. However, if a taxpayer signs up for this
campaign, then penalties can be mitigated to reflect the fact that the taxpayer
has come forward voluntarily.
Formal
notification to HMRC is required before 15
October 2013 with regards to outstanding tax returns for 2011/12 and
earlier years, and once the returns are filed the taxpayer is required to pay
the full amount of any income tax and/or National Insurance Contributions due, but
it is possible to make arrangements with HMRC for additional time to pay these
liabilities. Depending upon
circumstances, there may even be tax refunds due!
If a taxpayer
continues to ignore their fiscal responsibilities, HMRC have the powers to seek
payment of amounts that they “determine” are due (often with little resemblance
to “actual” income) and the taxpayer will be pursued through the Courts for
payment, and HMRC even go as far as considering a criminal investigation, if
appropriate.
If you
would like to know more about this campaign and would like help with the
completion of outstanding tax returns, then please contact us: info@petersonsims.com