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HMRC campaign – offshore income

Posted by: edwinsmith on May 28th, 2014

HMRC are currently running a campaign aimed at taxpayers who have undeclared income and gains offshore.

New international agreements will let HMRC see more about overseas accounts. If you have not declared overseas income and HMRC catch you, you will have to pay the undeclared tax, a penalty of up to double the tax you owe, and you could even go to prison if they pursue a criminal prosecution.

HMRC will soon be obtaining much greater information about overseas accounts, insurance products and other investments, including those held through overseas structures. This includes details of who is holding the account or asset, or owns the entity holding the asset including their name, address, date of birth, the balance of the account and payments made into it. They will be using this information to go after those who have evaded their taxes. It is important for individuals to use this campaign to come forward and declare all their offshore income and gains in order to obtain best terms for penalties.

Further information can be obtained here on HMRC website or please contact us for further advice.

Filed under: HMRC campaigns, Individuals, Tax

HMRC – Second incomes campaign

Posted by: edwinsmith on April 28th, 2014

HMRC have introduced another campaign that targets individuals who supplement there main source of income (usually employment) with an additional income from working for themselves that has not previously been declared and taxed .

This would be classed as a second income for the purposes of this campaign and would include income from activities such as:

  1. Consultancy fees –training, property plans etc.
  2. Organising parties and events
  3. Providing services like taxi driving, hairdressing or fitness training
  4. Making and selling craft items
  5. Buying and selling goods eg market stalls, car boot sales, eBay trading etc

The purpose of the campaign is to provide an incentive for individuals to make a voluntary disclosure of a second income in order to obtain best possible terms from HMRC.

If HMRC discover by their own means an undisclosed second income then penalties incurred by the individual may be higher and the individual could face criminal prosecution.

An individual will have 4 months (from the date of HMRC receiving notification) to calculate and pay the tax owed but if more time is needed to pay then a call to the HMRC help line (0300 123 0945) should be made.

HMRC can be notified by completing D01 - Second incomes campaign notification form  and follow instructions on submission of form (either online or post).

Once acknowledgement has been received by HMRC then complete D02 Second incomes campaign disclosure form and follow instructions on submission of form (either online or post).

Full details of campaign including a helpful video on what is deemed a second income can be found at HMRC second incomes campaign.

Please contact us if you require any assistance or advice concerning the second incomes campaign.

 

Filed under: HMRC campaigns, Individuals, Self Assessment, Tax

HMRC Campaigns: Let property

Posted by: edwinsmith on October 31st, 2013

HMRC are currently running the Let Property campaign aimed at property landlords who have not disclosed rental income and will be open for at least 18 months. This campaign is separate to a previous campaign called the Property sales campaign which closed in August 2013.

HMRC do hold information and intelligence systems on properties that can help them identify individuals who have not declared their rental income.

Therefore it is important for landlords/individuals to use this campaign to come forward and declare all their rental income and obtain best terms for penalties. HMRC will be able to issue higher penalties or even pursue a criminal prosecution for those that HMRC find from their own enquiries to have not disclosed rental income.

Please contact us for further advice.

Filed under: HMRC campaigns, Individuals, Self Assessment

HMRC Campaign – health and well being professionals

Posted by: edwinsmith on October 23rd, 2013

On 7 October 2013 HMRC introduced another campaign targeting health and well being professionals and offers them a time limited opportunity to bring their tax affairs up to date on the best terms available.

This covers health and well being professionals working with physical therapy -  physiotherapists, occupation therapists, chiropractors, osteopaths, chiropodists, podiatrists etc and those working with alternative and other therapies - dieticians, acupuncturists, speech, language and art therapists etc.

The campaign is not aimed at doctors and dentists (who have been targeted in previous campaigns) nor at nurses and social workers.

As with other similar campaigns that have been run before a specific time period is being offered to health professionals to notify HMRC by 31 December 2013 that they would like to take part in campaign and bring their tax affairs up to date. If taking part in campaign then to obtain best possible terms tax would need to be disclosed and paid by 6 April 2014.

Initially you would need to notify HMRC (by 31 December 2013):

  1. online by completing a notification form on the HMRC website
  2. by phone on Telephone: 0845 600 4507

HMRC will then send you Disclosure Reference Number and Payment Reference Number.

You will then need to make the formal disclosure to HMRC (by 6 April 2014):

  1. completing and submitting a disclosure form on the HMRC website
  2. printing and posting the completed form

Full details on the process of providing information to HMRC and obtaining best terms (reduced penalties, extended payment arrangements) can be found on  Health and Wellbeing Tax Plan: Your guide to making a disclosure - GOV.UK  which will also include the address to use if posting the disclosure form.

Health professionals need to be aware that after 31 December 2013 HMRC will be taking a lot closer look at the tax affairs of these professionals and by volunteering for the campaign then there is the opportunity to reduce possible penalties that would otherwise be charged by HMRC if they initiated any enquiries.

Please contact us for further advice

Filed under: HMRC campaigns, Self Assessment, Tax

The ‘My tax return catch up’ campaign

Posted by: edwinsmith on July 31st, 2013

HMRC has recently released details of its latest campaign which has been termed the ‘My tax return catch up plan’. Being similar to last year’s tax return initiative, it encourages late self assessment filers to get up to date.

If you are behind with your affairs and wish to take advantage of this latest campaign, you will need to:

  1. Tell HMRC that you want to join;
    1. Complete and submit all your outstanding returns; and
    2. Pay what you or if you are lucky, claim the repayment you are owed.

I am behind but why should I take part?

If you are behind with your tax returns then you will be incurring penalties. If you take part in the campaign then you will increase your chances of obtaining a reduced penalty. By getting up to date you also avoid receiving an estimate of the tax you owe together with the associated telephone calls and court visits.

If you owe a significant amount in tax you may be able to spread the payments on agreement with HMRC.

HMRC has created a dedicated helpline on 0845 601 8818 which is open Monday to Friday 9am to 5pm.

How to take part

If you wish to take part, you will need to tell HMRC by completing a notification form. More details on the HMRC website.

Once you have made the notification, you will need to complete and submit your returns by15 October 2013.

Details of other campaigns can be found on our website. If you need any assistance with your tax affairs then please do contact us for a free initial consultation.

Filed under: HMRC campaigns, Self Assessment, Tax

HMRC Property Sales Campaign

Posted by: edwinsmith on March 8th, 2013

HMRC have introduced a campaign in March for individuals to bring their tax affairs up to date by voluntary disclosing profits (income or capital gains) arising from property sales or rental income (from UK or abroad) which have not been declared to HMRC. The voluntary disclosure needs to be made by 6 September 2013 to enable individuals to take advantage of the best possible terms offered by HMRC – for full details HM Revenue & Customs: Property sales campaign 

After 6 September HMRC will use information it holds to target those who should have made a disclosure under the campaign. 

HMRC are able to obtain information from various sources on property transactions (Banks, Land registry, Property purchase documents, Property websites etc) to help with tax investigations. 

This campaign will in the main affect individuals who have not declared income on second properties but in some circumstances the disposal of your main residence may incur a capital gain. 

If you sell your own home property then the profit arising from the sale will be exempt (private residence relief) from capital gains tax as long as it’s been your only home or main residence and you have used it as your home and nothing else. If these conditions apply for the whole time of your ownership of the property then the disposal does not need to be declared to HMRC. 

If there have been other uses of your main residence or the property has not always been your home (main residence) during ownership then further advice will be required on the amount of private residence relief available. 

If you wish to take part in this campaign then you have until 9 August 2013 to notify HMRC by completing a notification form DO1 (Property Sales) - Property Sales Campaign Notification Form.  

Once HMRC have received notification they will send you a letter with a Disclosure Reference Number (DRN) and a Payment reference number. These will enable you to complete the Property Sales Campaign disclosure form. The disclosure form must reach HMRC by 6 September 2013 and the payment of tax made at the same time as disclosure - DO2 (Property Sales) - Property Sales Campaign Disclosure Form. 

If you are likely to have a problem paying the tax in full before the disclosure and payment deadline then you should contact HMRC who may agree a payment arrangement to spread the amount of tax due. The arrangement should be in place before the deadline. 

If you don’t take part in the campaign and HMRC subsequently discover undisclosed property income then they can start a criminal investigation and will charge full penalties. 

Please contact us for further advice on these matters.

Filed under: HMRC campaigns, Tax

Direct Selling Campaign – just a month to go

Posted by: edwinsmith on January 31st, 2013

The Direct Selling Campaign, as included on our news feed in September 2012, will close on 28 February 2013.

This campaign is focused on those who are selling directly to customers such as door to door for example. You might call yourself an agent, a consultant, a representative or perhaps a distributor and your selling may involve leaving brochures for later collection, demonstrating products in the home or at a party organised by the homeowner.

Even if you only sell to friends and family, it makes no difference. Tax may still be due on any earnings you generate.

Your disclosure and the payment of any tax must be made by 28 February.

HMRC are writing to direct sellers to make them aware of the campaign now. After the deadline, HMRC will start to make contact with those who did not come forward, where HMRC believe that they owe tax.

On 7 February, HMRC (@HMRCgovuk) is holding a live Twitter question and answer session between 1pm and 2pm.

If you know you need to make a disclosure under the Direct Selling Campaign, then complete the Direct Selling Campaign disclosure form today.  If you need any assistance or more advice on your own circumstances then please contact us.

Filed under: HMRC campaigns, Self Assessment, Tax

HMRC Direct Selling Campaign

Posted by: edwinsmith on September 27th, 2012

The latest in a long line of opportunities to come forward and voluntarily put your tax affairs right comes into effect on 28 September 2012. HMRC have named this latest opportunity as the Direct Selling Campaign.

This campaign focuses on those who are selling directly to customers such as door to door for example. You may be known as an agent, a consultant, a representative or perhaps a distributor and your selling may involve leaving brochures for later collection, demonstrating products in the home or at a party organised by the homeowner.

Perhaps you only sell to friends and family. Unfortunately, this makes no difference. Tax may still be due on any earnings you generate.

Am I eligible to use this opportunity?

If you started this type of work before 6 April 2011, and have not told HMRC, then you can come forward under the Direct Selling Campaign. To do so, you must complete and submit a disclosure form before 28 February 2013.

If you started after 6 April 2011, then you do not need to use this campaign, however, you must make sure that you have registered with HMRC if appropriate. If you are unsure, then please contact us for help.

When you make a disclosure, you will need to work out your earnings, the tax, interest and any penalty payable. There is an interest calculator on the HMRC website which may help.

Any disclosure you may must be full and complete. If it is later found to be false then HMRC will take action.

What if I do not come forward?

HMRC is using legal powers to obtain information from an extensive range of sources and, after each notification period closes, will use this data to identify those who have failed to come forward. HMRC campaigns use cutting-edge tools such as 'web robot' software to search the internet and find targeted information about specified people and companies which helps identify those who have failed to pay the right amount of tax.

HMRC has the right to pursue a criminal investigation in cases of tax fraud but an important factor in making this decision is whether a person has made a complete and unprompted disclosure of any amounts evaded or improperly reclaimed. While HMRC considers each case on its merits, where a person has made a complete and unprompted disclosure, they would generally not carry out a criminal investigation.

So, if you have income which has not been declared to HMRC, get in touch now before it is too late.

If you have any questions about your tax affairs then we would be pleased to discuss these with you. Arrange an appointment today with one of our advisors.

Filed under: HMRC campaigns, PAYE, Self Assessment, Tax

HMRC Tax return initiative

Posted by: edwinsmith on July 4th, 2012

The latest initiative from HM Revenue and Customs (HMRC) was launched yesterday (3rd July). This is a time limited campaign where specific tax payers are being given the opportunity to come forward and pay up. Previous campaigns have targeted offshore investments, medical professionals, private tutors and coaches, plumbers, electricians, VAT defaulters and online traders.

Higher rate taxpayers who are behind with the submission of their self assessment tax returns are being given the opportunity to come forward and take advantage of better terms and lower penalties than if HMRC approaches them first. This initiative is aimed at taxpayers who pay tax at 40% and above who have outstanding Self Assessment returns for 2009/10 or earlier, although any individual with outstanding returns for these years can get up to date within the campaign.

You have until 2 October to tell HMRC that you wish to take part, submit  your completed returns and pay any tax and national insurance that you owe.

If you are not up to date by 2 October, HMRC will use its powers to pursue you, in which case penalties of up to 100% of the tax due could follow with potential criminal investigation.

There are many reasons why you may be behind but now is the time to get up to date and we can help you with this.

HOW TO TAKE PART

We would be pleased to guide you through the process and help you get up to date but should you wish to register and take part before contacting us for help, then further guidance and online registration is available here.

You will also need to complete the returns by 2 October but we are here to help.

Please contact us for a free consultation so that we can help you get straight with your tax affairs and keep you in order in the future.

Filed under: HMRC campaigns, Self Assessment, Tax

HMRC’s e-marketplaces campaign

Posted by: edwinsmith on April 16th, 2012

HMRC have announced their latest campaign to target rule breakers and home in on tax evaders - the e-marketplaces campaign.  This campaign is for people who are trading online through an online marketplace, sometimes referred to as an online auction or online market to sell goods and services as a trade or as a business but are not paying the right amount of tax.

An e-marketplace is an online market, or online shop, where buyers and sellers trade with each other over the internet. They might buy and sell goods or services, or a combination of both. A separate company, a 'third party', runs most e-marketplace websites. They let you advertise or auction your goods or services on their website, and usually charge a fee for this service - either for using their site, the amount you sell your goods or services for, or both.

The campaign is not for people who only sell a few of their personal items. They are unlikely to need to pay tax as they are not trading. Further guidenance about whether people are trading or not can be obtained on the HMRC website at  http://www.hmrc.gov.uk/campaigns/emarket.htm.

If you trade online and you have not disclosed all your income, you can use the e-Markets Disclosure Facility (e-MDF) to enable any unreported income to be declared and the related tax paid. By making a disclosure under the e-MDF you may benefit as follows:

  • you may only have to pay for a maximum of six tax years
  • you can tell HMRC how much penalty you should pay
  • you may be able to pay what you owe by instalments

If you owe tax in respect of anything else such as capital gains or rental income you can use the e-MDF to tell HMRC about that too and make a full disclosure.

If you wish to use the e-MDF to bring your affairs up to date you will need to tell HMRC by 14 June 2012 that you intend to make a disclosure and follow this up with a full disclosure and payment of the tax liability by 14 September 2012.If you think that you have not paid the correct amount of tax or would like advice please contact us.

Filed under: HMRC campaigns, Tax
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