Behind with your tax? HMRC offers an opportunity to get ahead
In July HMRC announced an incentive to help taxpayers with overdue tax returns. My Tax Return Catch Up is a new facility for filing a tax return for any year up to 2011/12.
The facility means that penalties will be significantly reduced and, although late filing penalties, late payment penalties and interest will still apply, HMRC has announced that it would not apply the highest penalty, that is the late filing penalty equal to 100% of the tax due for tax returns which are more than 12 months' late, to anyone filing through the Catch Up facility.
Users of this facility will also be spared:
- Determinations, an estimate of tax liability made by HMRC;
- Referral to debt collection, which may result in unwanted telephone calls and visits; and
- Possible court action.
Catch Up is not available to individuals for whom HMRC has already opened an investigation, enquiry or compliance check into their tax affairs, or if individuals are not currently registered for self-assessment. HMRC's intelligence gathering software, Connect will contact relevant individuals, anyone who has received a notice to file a tax return for any tax year up to and including 2011/12.
Catch Up expires on 15 October 2013, by then you must submit any outstanding returns and pay any tax and NI due. HMRC will discuss time to pay if your situation warrants it.
Contact DNS today to discuss any concerns you have about your tax affairs. We can assist you:
- Prepare your outstanding tax returns
- Calculate any tax payable or repayable
- Estimate late filing and late payment penalties and any interest likely to be due.
There's more information on tax and penaltieson our blog.
Any questions? Schedule a call with one of our experts.