Deadline for settling late tax returns approaches

Taxpayers who failed to submit tax returns have only one week left to take up a special opportunity being offered by HMRC

The HM Revenue & Customs (HMRC) Tax Return Initiative is aimed at people liable to pay tax at rates of 40 per cent and above and who have been told to submit a Self Assessment tax return for 2009/10 or earlier, but have not done so. The campaign is also available to others who have tax returns to submit for these years.

Deadline approaching

People have until 2 October 2012 to tell HMRC they want to take part, submit completed returns, and pay the tax and National Insurance Contributions (NICs) that they owe. By coming forward voluntarily through the campaign, launched on 3 July 2012, people will receive better terms, and any penalty they pay will be lower than if HMRC comes to them first.

Penalties

After 2 October 2012, if they have not sent in their tax returns and paid what they owe, HMRC can use its legal powers to pursue outstanding returns and any unpaid tax and NICs. HMRC might estimate the amount of tax they owe for each year and enforce payment by taking them to court or by asking a debt collection agency to collect it. HMRC may also refer such cases for criminal investigation.

Ensure your tax affairs up to date

Marian Wilson, head of HMRC Campaigns, said: “Time is running out if HMRC sent you a Self Assessment tax return or notice to complete a tax return for 2009/10 or earlier and you have not acted on it. You need to go onto the HMRC website now and bring your tax affairs up to date. If your circumstances warrant it, you will be able to spread the payments.”

How do you get involved in the campaign?

People can take part in the campaign by:

Help is also available from HMRC by calling their dedicated helpline on Tel 0845 601 8818.

Source: nibusinessinfo.co.uk