HM Revenue and Customs (HMRC) Announce a Tax Return Initiative. (For Some)
HMRC has announced a Tax Return initiative to enable some individuals to bring their tax affairs up to date with little or no penalty.
The initiative has some restrictions as it only applies to those individuals, already known to HMRC. Another requirement is that HMRC has already sent out 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,
If you fit the above criteria, HMRC is offering you a "quick and straight forward" way to bring your tax affairs up to date.
Full details can be found at the link shown below.
It should be noted, however, that the offer is conditional and it relates to the penalties that HMRC can charge on tax paid late and not the tax or interest chargeable.
It must be remembered that you still have to comply with the following 3 points:
- You send in your completed tax returns for years 2009-10 or earlier and pay any tax you owe before 2 October 2012:
- You will already have been told if any fixed penalties that are due. £100 is charged when a return is late with another £100 for returns that are still not submitted some six months later;
- You still have to pay interest and surcharges that are also payable on any tax paid late.
The offer from HMRC arises because:
- HMRC can also charge a penalty based on the amount owed. This can be as much as 100 per cent of the tax, however in some circumstances, HMRC say that this can be reduced to nothing.
By taking part in the campaign, it is claimed that people will receive the best terms on offer and HMRC expects that most will not have to pay a penalty. As usual HMRC say that it is always better to come to HMRC before they come to you.
The initiative also provides an opportunity to spread the payments although it does not advise that such a spread will incur further interest charges.
It is an opportunity to bring your tax affairs up to date.
If you would like to look at submitting details under this initiative, please contact our Business Tax Director: