HMRC has today (3 July) announced that it is launching a campaign targeting higher rate taxpayers who have outstanding tax returns. The campaign will run from today until 2 October 2012.
Gary Ashford, RSM Tenon’s Head of Tax Investigations, said: ‘Higher rate taxpayers who regularly fail to complete and submit their tax returns are viewed as high-risk by HMRC often because they simply just pay interest or estimated tax rather than submit a return.
‘The campaign will not just target those people that have failed to submit a return when asked, but also any person who believes they need to make a tax return. This could confuse some taxpayers as they may well have received a letter from HMRC some time ago saying they are no longer looking for a return from them.
‘I would urge anyone that is worried about whether they need to file a return to take advice while the campaign is open. If they are sure that a return is required then they also need to ensure that their tax return is accurate and submitted by the campaign deadline. Late tax returns are generally viewed by HMRC as a risk pointing towards wider non-compliance, and any that are found to be inaccurate could spark an investigation, and this is particularly relevant to previously undeclared sources of income.
‘Higher rate taxpayers that have an overseas asset that they have not previously declared can still make a disclosure under the Liechtenstein Disclosure Facility which was introduced by HMRC and could reduce any penalty incurred.’