Tax Return Initiative – another HMRC amnesty

A new amnesty, which runs until 2 October 2012, has been announced.  This one aims to encourage higher rate (i.e. 40% and 50%)  taxpayers who have outstanding tax returns for 2009/10 and earlier years to complete them now and settle up their late tax.

The incentive being offered is a reduction in the penalties from the potential charge of 100% of unpaid tax to 10% or less. However, fixed penalties (such as the automatic £100 penalty for missing the first filing deadline) that have already been charged will remain, as will interest and surcharges on tax paid late.

This latest initiative is only open to individuals who are already registered under the self-assessment system and have outstanding tax returns. So, for that group, the amnesty makes a great deal of sense as sooner or later these individuals wil be obliged to complete returns – and will suffer much higher penalties.  Anybody who is not on HMRC’s radar at all is able to use the sector specific tax amnesties (for plumbers, electricians, online marketplace traders etc.)

If you would like to meet with us to discuss whether the Tax Return Inititive makes sense for you then you should contact us.