HMRC launches Tax Return Initiative for higher earners...

Posted by on 26 July 2012 | 0 Comments

Higher earners who have yet to submit self-assessment tax returns from two or more years ago are being given the opportunity to get their tax affairs in order.

HM Revenue and Customs (HMRC) launched its Tax Return Initiative (TRI) on 3 July 2012. The campaign, which will run until 2 October 2012, is aimed at those who have failed to submit their completed self-assessment tax returns for 2009/10 or earlier and are liable for the 40% and 50% higher rates of tax.

As with previous campaigns, HMRC is offering an incentive to those who take advantage of the disclosure opportunity. In this instance, HMRC may not charge a tax-related late filing penalty, although it will consider fixed penalties of £100 per return, as well as interest and surcharges on the tax which is paid late. HMRC state that by taking part in the campaign, people will receive the best terms on offer and HMRC expects that most will not have to pay the tax geared penalty.

Andy McQuillan, Partner at Dains said: “Anyone who meets the TRI criteria should submit their outstanding returns and pay any tax and National insurance contributions owed by 2 October. If you are unsure of your tax liability or what action you need to take then you should seek professional advice as soon as possible, rather than simply ignoring your concerns.”