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Solicitors targeted in new tax campaign

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11th Dec 2014
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A new campaign aimed at solicitors has been launched at HMRC, giving them the chance to disclose what tax they owe and pay it, or face harsher penalties.

The Solicitors' Tax Campaign is the latest of the Revenue's voluntary disclosure opportunities. Since May 2011, over 30 similar campaigns have been carried out across other professions including electricians, landlords and medical professionals, which has brought them a £1bn  yield through disclosures and follow-up activity, it said.

Solicitors have until 9 March 2015 to tell HMRC that they would like to take part in the campaign, and until 9 June 2015 to disclose the tax they owe and pay it.

The Revenue said that penalties will be lower for those who voluntarily disclose. 

By using this campaign to come forward voluntarily, any penalties they might have to pay will be lower than if HMRC has to approach them first.

Caroline Addison, head of campaigns at HMRC, said those who don't disclose could face a 100% plus penalty or criminal prosecution if HMRC has to approach them. Penalties for offshore-related income can be up to 200%.

"It will be easier and cheaper for you to come to us than for us to come to you," she said.

“Those who make a deliberate decision not to pay the taxes due could face a penalty of 100% or more of the tax due, or even a criminal prosecution.”

The Revenue has calculators available for those who wish to calculate what they owe. There is also a voluntary disclosure helpline: 0300 123 1077.

According to chairman of the bar council Michael Todd, it isn't clear why the legal profession has been targeted. 

“The law is one of the UK’s strongest exports, and barristers and solicitors bring billions in revenue to the UK every year," he said. 

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Replies (5)

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Small Dog's RAT Return
By Oldmanwetmix
12th Dec 2014 09:42

Sounds like a zero enforcement policy

How can solicitors claim they didn't know what income they had to pay tax on? If HMRC know a particular solicitor hasn't paid tax, why don't they just open an enquiry? Most solicitors I know are so thick skinned that if they haven't already declared income they are not going to be frightened into doing so now. I'll bet the yield on this one is paltry.

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By Exector
12th Dec 2014 11:02

why dont they just open an enquiry?

Because they haven't got the resource.

This is their attempt at doing it on the cheap. Its a natural progression really. First self assessment , now self-investigation.

 

I've described it before as the Wizard of Oz technique and it is.

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By ireallyshouldknowthisbut
12th Dec 2014 14:01

.

I am curious how solicitors go about avoiding large sums of tax. 

Compared to accountants at least, they tend to work in quite large organisations. There are not that many "lone wolfs". Most are in 5-10 people firms. 

The only fiddle I know about is they tend to pocket the £10 or £20 charged for witnessing documents. It is amazing how many solictors will do this, and how few (if you do their tax returns) ever have any to declare!

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By Nick Graves
12th Dec 2014 18:35

Easy peasy

All HMRC has to do is look for the Money Laundering Reports the briefs will have filed on themselves.

 

 

 

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By LittleWhiteBull
19th Dec 2014 14:27

Solicitors now, Accountants next

What next, will it be accountants being picked on? When will these grubby little people authorized by a non entity government relent.

It goes to show that most people in government/ local government departments (those higher up the scale rather than their low paid minnions) are athiests. How do I come by making that comment - because they pick on these main parts of the religous calendar to go after extra money and aim to get it no matter what the cost is to law biding citizens.

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