Campaign offers chance to settle tax bills

HM Revenue and Customs (HMRC) has launched a new initiative to encourage more people to put their tax affairs in order.

HMRC has announced that anyone who has failed to submit a tax return for any year up to 2011/12 now has until 15 October 2013 to do so and pay any tax and national insurance they owe. 

After 15 October, if they have not submitted their returns and paid the tax due, penalties of up to 100 per cent of the tax (200 per cent for 2011/12 for offshore matters) could follow, and in certain cases, criminal investigation.

As part of the campaign, HMRC will be writing to several thousand people it has identified using its Connect system and making follow-up calls to many of them. 

The campaign follows last year’s Tax Return Initiative campaign, which covered higher rate taxpayers who had failed to submit 2008/09 or 2009/10 returns.  Under that campaign, more than £30 million was paid when over 3,000 people came forward voluntarily, filing more than 5,500 tax returns.

Taking advantage of this opportunity means you will be able to get your tax affairs in order, on the best possible terms.  Although some penalties will apply, it will still cost a lot less than if HMRC catches up with you at a later date.

As with any tax matter, it is best to act sooner rather than later.  Even if you haven’t received a letter from HMRC but are still unsure whether your tax affairs are up to date, then you should seek advice at the earliest opportunity, rather than waiting for the taxman to come calling.

For further information, please contact Stuart Hinnigan.