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Tax Amnesty on Offer for Businesses

May 2011

We are advising businesses and individuals who have not fully disclosed past tax arrears that they have until the end of this month to contact their tax office in order to take advantage of the tax amnesty which it is currently on offer.

HM Revenue & Customs (HMRC) is offering to limit a penalty in these circumstances to a maximum of 20%, which can be reduced to 10% if the errors were deemed careless rather than deliberate, providing firms contact their tax office by Tuesday 31st May.

Ian Fawcett, Tax Partner comments, “Initially HMRC restricted this deal to plumbers and people in associated trades who receive cash-in-hand payments, however they have now confirmed that this temporary amnesty is in fact open to anyone. The idea is to make sure that those who have not declared extra income or gains do so and therefore avoid a hefty fine in the future if they are found to be evading tax.”

Businesses and individuals who need to make a disclosure must notify HMRC by 31st May. They will then have until Wednesday 31st August to provide full details of the undeclared income together with payment of the outstanding tax, interest and the reduced amnesty penalty.

Those seeking tax advice can contact Ian Fawcett on 0116 254 9262.