HMRC Tax Return Initiative Offers Good Chance to Settle with HMRC

Higher rate taxpayers who have failed to submit tax returns are being offered the opportunity to come forward and pay up under a time-limited HMRC offer. HMRC’s Tax Return Initiative is aimed specifically at people liable to pay tax at rates of 40% and above who have been told to submit a Self Assessment tax return for 2009/10 or earlier, but have not done so. However the offer is also available to any individual who has tax returns to submit to HMRC for these years. Participants have until 2 October 2012 to tell HMRC they want to take part, submit completed returns, and pay the taxes they owe. By coming forward voluntarily participants will receive better terms and any penalty they pay will be lower than if HMRC challenge them first. After 2 October, if HMRC’s Tax Return Initiative has not been used, HMRC will use its powers to pursue outstanding returns and any unpaid taxes. Penalties of up to 100 per cent of the tax due or even criminal investigation could follow. Marshall Smalley’s advice is that the Tax Return Initiative provides a limited opportunity for those who want to get their tax affairs up to date to come forward in the next month, penalties will be higher if people don’t use this facility and some could face a criminal investigation. For these reasons we encourage people to come forward and disclose unpaid tax voluntarily under the Tax Return Initiative.

Tax Return deadlines

31st October - Paper Tax Returns If you send a paper tax return, it must reach HMRC by midnight on 31 October. 31 January - Online Tax Returns Your online tax return must reach HMRC by midnight on 31 January. Penalties if you miss the deadlines If you miss the deadlines, the longer you delay, the more you'll have to pay. So it's important to send your tax return to HMRC on time. If you have not already taken action now is the time to gather together your information. Chase in any missing statements from banks and building societies to avoid delays in processing your returns. It makes sense to find out how much tax you have to pay in advance of the payment deadlines to allow time to set it aside.