HMRC offer incentive to bring Tax Returns up to date
Written by Ray Coman
HMRC have this month put forward an incentive to taxpayers with overdue Tax returns. A new facility, 'My Tax Return Catch Up', has been made available for filing a tax return for any year up to 2011-12.
By taking advantage of the facility, penalties that would otherwise be due will be significantly reduced. Although late filing penalties, late payment penalties and interest would still apply, HMRC have offered the best terms available for those that file using the 'Catch Up' facility. In particular, HMRC have announced that they would not apply the highest penalty to those taking part in the campaign. This is a late filing penalty of equal to 100% of the tax due for Tax returns which are more than 12 months' late.
In addition to being spared the higher penalty, participants in the initiative would also avoid:
- Determinations. A determination is essentially an estimate of tax liability made by HMRC;
- Referral to debt collection which could result in unwanted telephone calls and visits; and
- Possible court action.
With the aide of intelligence gathering software, Connect, HMRC is expected to contact relevant individuals. The proposal is aimed at taxpayers who have received a notice to file a tax return for any tax year up to and including 2011-12. The 'Catch Up' offer will expire on 15 October 2013.
Coman & co can assist:
- Prepare your Tax Returns for outstanding tax years.
- Take advantage of the offer made by HMRC in the 'My Tax Return Catch Up' campaign.
- Calculate any tax payable or repayable, late filing late payment penalties and any interest thereon.
Please contact us to discuss how we can assist with the above