New SA settlement deal offered to taxpayers

HMRC has launched a new voluntary campaign for individual taxpayers to settle their tax bills if they failed to complete a self assessment tax return up to 2011/12.

The settlement window opened this week and participants have until 15 October to complete and submit a tax return, and pay the tax and National Insurance Contributions (NICs) that they owe.

Those that come forward under this campaign will benefit from a reduced penalty of 10%.

Thereafter penalties will jump up to between 30% and 100% of the tax due, with an additional risk of criminal investigation.

In the coming weeks HMRC will...

Continued...

» Register now

The full article is available to registered AccountingWEB members only. To read the rest of this article you’ll need to login or register.

Registration is FREE and allows you to view all content, ask questions, comment and much more.

Comments

How does this reconcile with

school63 | | Permalink

How does this reconcile with the article i read about HMRC losing the appeal on the daily penalties

fixed penalties?

jessica_arora | | Permalink

So if someone files there 2011/2012 tax return under my tax return catch up scheme - does that mean hmrc wont charge them fixed penalties ..? so only penalty under the scheme charged will be 10% of tax due? if that's the case its a great campaign for late filers to submit there returns

this ridiculously pecuniary penalty rule

david5541 | | Permalink

 

this ridiculously pecuniary penalty rule  was thrust on an overseas client of mine for 10/11  with daily and three monthly penalties being wacked on totalling 1200 when the liability was nil!....

 

of course my reasonable appeal was rejected -maybe i should have been alot more unreasonable with the department!!!!! 

 

 

Heard it all before    1 thanks

The Black Knight | | Permalink

getting a bit tired this....own up if you want when you want and we will have a 10% scheme that will fit. If you don't bother we won't either.

Only 3 plumbers (the criminally stupid) have been caught and everyone knows a cash in hand no vat plumber that hasn't been caught. Very low odds that you can take to the bank.

How HMRC miss whole house loads of unpaid tax is a giggle.

HMRC must have information on fifty years worth of cases they haven't acted on and are unlikely to do so if past performance is anything to go by.

when does

The Black Knight | | Permalink

When does a late return become a deliberate attempt at evasion?

I have also noticed that you can go 7 or 8 years without filing a return. No determinations will be issued and the penalties just sit on the statement of account with no collection proceedings.

I have also seen them refund amounts from later years and not required the penalties or the tax from the earlier years! Guess that's computers for you.

In Writing?

mabzden | | Permalink

Has HMRC said categorically, in writing, that penalties will be 10%? I can't see anything on their website to confirm this - in fact they avoid giving any figures.

I've been involved in "campaigns" before where HMRC says one thing at the start and this is conveniently denied and/or ignored by the tax inspectors handling the cases later on. So beware about recommending anything to your clients based on uncredited quotes in a newstory.

I won't be mentioning the 10% figure until I've seen written confirmation on HMRC's website and details of any conditions or caveats. And, knowing how HMRC operates, I very much doubt this will happen.

penalties

wannabay | | Permalink

the guidance notes under the 'what's in it for me' heading confirm that the fixed penalties remain but that the behavioural penalties are likely to be avoided, so there's not much incentive

Has anyone submitted overdue

jessica_arora | | Permalink

Has anyone submitted overdue tax return under this campaign yet for there clients?

The only thing  can I can see

mabzden | | Permalink

The only thing  can I can see in the "What's in it for me" section about penalties is "increase your chances of saving a higher penalty based on behaviour". So it sounds as if HMRC's normal penalty regime applies, although you'll get a bit of credit for cooperating.

 

penalties

wannabay | | Permalink

you need to click on the guidance note link at the end of that section, then look at the appendix, extract below

HMRC can charge higher penalties depending on behaviour. These can be as much as 100% of the tax and NIC’s due. By taking part in the campaign you will receive the best terms on offer and we expect that most will not have to pay these penalties. It is always better to come to come to us before we come to you. Some late filing penalties will remain due, as well as the tax owed, and any interest, surcharges and penalties for late payment.