Am I right in thinking that if a refund is owed prior to 2009 the Intiative will allow it to be reclaimed or is it only for an amnesty for taxPAYERS.
For those of you that haven't read it see below. We can look forward to a busy 3 months.
Tax Return Initiative
If HM Revenue & Customs (HMRC) have sent you a Self Assessment tax return or notice to complete a tax return for 2009-10 or earlier and you have not yet taken any action, HMRC are offering you a quick and straight forward way to bring your tax affairs up to date. There is also a dedicated telephone helpline to support you.
What to do now
To take part in the Tax Return Initiative you need to tell HMRC that you intend to do so. You can do this by completing an online form and sending it to HMRC either electronically or by post. It only takes a few minutes. You then need to complete and submit your late tax return(s) and pay what you owe (or claim any repayment that might be due) by 2 October 2012.
Notifying HMRC that you want to take part
You can instantly submit your notification form online to HMRC using the 'submit by email' option in the form.
Alternatively, you can complete and post your form to:
HM Revenue & Customs
Tax Return Initiative Team
Holland House
20 Oxford Road
Bournemouth
Dorset
BH8 8DZ
You can ask your tax agent or adviser (if you have one) to notify HMRC on your behalf by using either of these options.
Download the Tax Return Initiative form (PDF 170KB)
Completing your tax returns
Once you have notified HMRC you want take part in this initiative, you will need to complete and submit your tax returns by 2 October 2012. The quickest way is to submit your tax returns online. You will need to register for HMRC Online Services if you have not already done so. If you need to register you should do so without delay in order to meet the 2 October closing date. If you are unable to complete your tax returns online, you can complete paper returns and send them to HMRC at the address shown above.
You can ask an accountant, tax agent or adviser to submit your tax returns if they are formally authorised to do so.
Replies (10)
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It does seem that way
The guide definitely says "....or claim any repayment that might be due." I have worked recently on several new clients whose tax affairs were many years overdue and were in a repayment situation. I had to explain that 2007/2008 and prior couldn't be filed and repayments were out of time.
Presumably, this Initiative means that I can now reclaim that refund.
As Bernard Michael says; it's going to be a busy 3 months. More dosh for my clients but more importantly - more dosh for ME.
So it looks like HMRC are willing to waive certain penalties for late filing/payment of tax, but not the £100 late penalties if I'm reading this http://www.hmrc.gov.uk/campaigns/tri.htm correctly.
Is this understanding correct?
This is actually quite poignant for me as I have a client who I filed 2010/11 for who was wrongly under the impression his 2009/10 had been filed. We were planning to do this in July anyway so hopefully this has come along at a good time!!
@Chris Scullard
That's my understanding as well. The £100 penalties will still be payable but additional penalties could be reduced to zero. But that's always been the case. I think that all HMRC are saying is that, as part of this particular campaign, they are more likely not to charge any additional penalties.
What additional penalties?
Surely a late return is a late return.
Until a determination is raised there is not an understatement of income to charge penalties on??
Will the surcharges still apply?
Is it worth registering?
My initial reading of the guidance seemed to suggest that the benefits (the unspecified 'best terms' - which seems to fall short of a guaranteed zero tax-geared penalty) are available if the returns are filed and tax paid by 2 October. So it is unclear what is actually gained by registering for the initiative - can anyone else shed any light on this?
Out of time repayments
I suspect the comment in the guidance about claiming repayments is there for 09/10 and 08/09 returns. I see nothing that suggests they are willing to extend the time limits, so would expect them to say that an 07/08 repayment is now no longer due.
Flush out with Determinations
Surely there is a high chance that those that do not complain bitterly about an overstatement of tax and submit their returns have accepted the determination because it is lower than the real figure? = investigate
No amnesty required!
Tax Return Initiative
This campaign is only going to save tax-geared penalties for being more than 12 months late in filing returns. It does not extend the maximum statutory periods of 4 years for claiming a tax repayment or 20 years for assessing under-declared or under-assessed tax. It is intended for those who have received tax returns for 2009/10 or earlier and never filed them. If there is tax to pay, HMRC can issue determinations and then charge tax-geared penalties but if a return is submitted under this campaign, the right tax will be calculated and be payable and HMRC will agree a much reduced tax-geared penalty compared to that charged with a determination. HMRC will eventually get round to issuing determinations where tax returns are outstanding and the longer they leave it, the more the interest and the higher the penalty they can justify. This gets the tax in more quickly and easily. Any accountants unsure about this for their clients should tax advice from an independent tax consultant http://uk.linkedin.com/pub/tony-austin/8/a6a/126