H.M.R.C. are cranking up their campaigns against tax defaulters by launching two new initiatives:
The Let Property Campaign
This campaign is aimed at getting people with undeclared rental income to come forward. It is targeting the residential property letting market. H.M.R.C. estimates that up to 1.5 million landlords in this sector may be underpaying up to £500 million in UK tax every year. The campaign is open to all residential property landlords with undeclared income. As it is aimed at a large group of people and will be running for at least 18 months H.M.R.C. has not currently published the date when it will close. Most previous campaigns have had two deadlines. The first is to notify H.M.R.C. that the tax payer is going to take advantage of the campaign’s disclosure opportunities and the second is the final date by which the disclosure must be made.
In the case of the Let Property Campaign the opportunity to come forward voluntarily will remain open throughout the entire period it is running.
H.M.R.C. is using information it holds about property rentals in the UK and abroad along with information already held on its digital intelligence system Connect to identify people who have not paid what they owe. Those that don’t come forward could get a penalty of up to 100% of the tax due and a possible criminal prosecution.
Health and Wellbeing Tax Plan
This campaign is aimed at health professionals. It targets those with undeclared income who work in health and wellbeing including
alternative medicine or therapy. Examples of the areas where H.M.R.C have identified undeclared income are; physiotherapy, chiropractice, chiropody, osteopathy, occupational therapy, homeopathy, acupuncture, nutritional therapy, reflexology, nutrition, psychology, speech and arts therapy.
Unlike the Let Property Campaign this has a specific period and two deadlines. It will run from 7 October 2013 to 6 April 2014. The deadlines are:
- 31 December 2013 to notify H.M.R.C. if you plan to use the opportunity, and
- 6 April 2014 to make the disclosure and pay the outstanding tax plus interest and penalties
H.M.R.C. expects that in most cases, disclosure will be required going back no more than 6 years although it depends on the tax payer’s behaviour e.g. whether Tax Returns have been issued for the relevant years.
If you would like more information or if you think either of these plans apply to you please do get in touch with me or my team. You can contact us on 01788 577613 (Rugby office) or 01908 564701 (Stony Stratford office), by email on firstname.lastname@example.org or via Twitter on @CliffordTowers.
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