UK Chases Missed Tax Returns

September 4, 2012 Taxation in UK

HM Revenue & CustomsLONDON – UK tax authorities are cracking down on tax evasion by pursuing taxpayers who have not completed or submitted their tax returns in the past.

Over the course of the current week the HM Revenue and Customs (HMRC) will be sending out letters to affluent taxpayers offering them the opportunity to come forward to catch up with their missed tax filing obligations in an exchange for lowered penalties.

The letters will be sent primarily to taxpayers in the top tax bracket who did not file a personal tax return in the 2009 fiscal year, and is expected to be received by over 7 000 individuals.

Any taxpayers who take up the HMRC’s offer will be required to meet their missed tax payments, along with all accrued interests, and also pay a penalty of up to 20 percent of the taxes due.

Under normal circumstances taxpayers who have failed to submit their personal tax returns may face penalties of up to 100 percent of the taxes owed.

The HMRC has stated that it may lay criminal charges against taxpayers who do not take advantage of this opportunity to come clean about their tax obligations.

According to the HMRC, in exchange for voluntarily coming forward with information on their missed tax payment, taxpayers may also be offered the opportunity to pay back their obligations through a payment plan if their current financial position does not allow them to make a one-off payment.

The HMRC’s offer will expire on October 2nd, and is open to all taxpayers regardless of whether they have received a letter or not.

Photo by Karen V Bryan