You’ll know from my past blogs that HMRC have been targeting areas of the economy where they think there are tax evasion “black spots”. Just to put you into perspective: there have been 80 task forces since 2011 and 20 more are planned in 2014/15.
The task forces target areas of the economy where HMRC has evidence of tax evasion. People who come clean about their financial affairs during the campaigns can expect to receive more lenient treatment than they might otherwise receive.
The latest task force is the Credit Card Sales Campaign (CCSC). This was launched at the beginning of October 2014 and is aimed at both individuals and companies in business. HMRC suspect there are entities who accept debit and credit cards but have not recorded all such transactions in their accounts. HMRC must have had third party information from card providers which arouses their suspicions. The actual start date was 9th October 2014 and HMRC have said that tax payers have 4 months to calculate and pay what they owe.
Some examples that HMRC give of where CCSC might apply are:
- A business accepting payments by card that has not declared all of these payments as income or
- A business that is trading and has not registered with HMRC at all and has accepted payment by cards for their income.
How do you take part in the CCSC?
If you accept debit and credit cards as payment for your services or products and think that potentially this campaign may affect you – then there are some ways in which you can participate in this Campaign:
- Notify – you tell HMRC that you want to take part
- Disclose – you tell HMRC about all the income and tax and duties that you have not told them about
- Offer – you make a formal offer
- Pay – you pay over the tax and penalties that you have calculated
- Help – you help HMRC as much as you can if they need more information
To benefit from the reduced penalties that they offer you need to provide as much help and as much accurate information as possible.
Why might you want to take advantage of this Campaign?
It is always better to go to HMRC and admit failures or inaccuracies in dealing with your tax affairs. Whether the errors are caused by misunderstanding the rules or deliberately avoiding declaring income it is always better.
When you make the disclosure you have to tell HMRC what penalty you believe you should pay. This will depend on why you failed to disclose your income. If you have deliberately withheld information from HMRC then you will have to pay a higher penalty than if it were by mistake.
What if you don’t take advantage of this Campaign?
HMRC is targeting tax evasion through debit and credit card sales. It has information on its digital intelligence systems to identify tax payers who might not have declared all their income. If you should have made a disclosure and haven’t then it is highly likely that any penalties will be much higher than otherwise could be.
If you would like more information or wish us act on your behalf in making a disclosure please get in touch with me on 01788 577613, via email or pop a question below if you want to ask anything based on what I shared above with you.Image in graphic above courtesy of: ldprod / 123RF Stock Photo