Time running out for late tax returns

by Susie Hughes at 11:32 05/09/12 (News on Business)

Thousands of higher rate taxpayers who have failed to submit tax returns will receive letters from HM Revenue and Customs (HMRC) this month, reminding them that they have only one month left to take advantage of more lenient regime.

The 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 anyone who has tax returns to submit for these years. People have until October 2 to tell HMRC they want to take part, submit completed returns, and pay the tax and National Insurance Contributions (NICs) that they owe. HMRC says that by coming forward voluntarily through the campaign people will receive better terms, and any penalty they pay will be lower than if HMRC comes to them first. After October 2, if they have not submitted their tax returns and paid what they owe, HMRC says that it will use its legal powers to pursue outstanding returns and any unpaid tax and NICs. Penalties of up to 100 per cent of the tax due, or even criminal investigation, could follow. Advertisement Marian Wilson, head of HMRC Campaigns, said: “If HMRC has sent you 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, this campaign offers you a quick and straightforward way to bring your tax affairs up to date. But time is running out. You have until October 2 to submit your tax returns and pay the tax you owe. “If you cannot afford to pay what you owe all at once, don’t worry. If your circumstances warrant it, you will be able to spread the payments.” HMRC's targetted campaigns have so far have collected nearly £510 million from people coming forward, and more than £120 million from HMRC follow-ups, including over 18,000 completed investigations. There are also 23 criminal cases under way. Previous campaigns have targeted offshore investments, medical professionals, private tutors and coaches, plumbers, electricians, central heating engineers, VAT defaulters and online traders. Tweet -- If you wish to comment on this article, please log in and use the Reply button below. Registering is free and easy - see 'Join Shout99'. - Susie Hughes © Shout99 2012

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