New tax return initiatives announced for higher rate taxpayers...

Posted by on 5 July 2012 | 0 Comments

HM Revenue & Customs (“HMRC”) have announced the ‘Tax Return Initiative’ to Higher Rate taxpayers who have failed to declare income... 

HMRC’s latest campaign is the “Tax Return Initiative”. Individuals who have not previously completed self-assessment forms will be given until 2 October 2012 to declare untaxed income earned before 2010. HMRC is writing to anyone who is liable to pay tax at 40% or 50% who have failed to comply with a request to fill in a self-assessment Tax Return for the 2009/10 tax year or earlier.

Is this HMRC campaign for me?

This is an opportunity for individuals who have not submitted their tax returns for 2009/10 or earlier to come forward.  If you have un-declared income from previous years this represents an excellent opportunity to bring your tax affairs fully up to date.

What’s in it for me?

Those coming forward will face penalties of £200 plus a fine equivalent to 10% of the unpaid tax.  This contrasts favourably with the existing penalty regime which imposes spot fines of over £1,000 plus fines of up to 100% of the unpaid tax.

What happens if I don’t complete my tax returns?

HMRC is reviewing records and identifying individuals who have failed to comply with their obligations to submit tax returns. 

If you have not submitted your returns, HMRC will use it’s powers to issue “Best Judgement” determinations and seek payment of the determined tax through tax demands, telephone calls, personal visits and, ultimately, via the courts. 

HMRC will also seek tax geared penalties of up to 100% of the tax due for late returns where individuals do not take advantage of this opportunity. 

If you do wish to ensure that your tax affairs are fully up to date, and compliant with HMRC, then now is the time to act. 

If you would like to discuss the new HMRC Tax Return Initiative, please click here to submit an enquiry.