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Future Campaigns
HM Revenue & Customs (HMRC) believes that over 1.5 million individuals and some 300,000 businesses are not paying the correct amount of tax due to fraud, evasion and/or criminal attack. Criminal tax investigations are resource intensive, expensive and time consuming so HMRC's priority in recent years has been to tackle tax fraud (or non-compliance (including the hidden economy)) by way of civil investigations and various disclosure facilities and campaigns.
HMRC's approach is to use targeted campaigns rather than offering a general tax amnesty. In the period to June 2011, HMRC had raised more than £500million from voluntary disclosures made using targeted campaigns and a further £100million from follow-up activity. HMRC campaigns have targeted offshore accounts and investments, medical professionals and people working in the plumbing industry.
What Campaigns are next on the horizon?
HMRC Campaigns are here to stay. They have been given 'No.1 priority' in HMRC's attack on non-compliance and its approach was supported by the National Audit Office which commented favourably on the Offshore Disclosure Facility (ODF) and recommended that HMRC "devise similar schemes in other sectors to secure widespread voluntary disclosure."
No business or trade sector can consider itself 'untouchable'. HMRC has already amassed data and intelligence from individual compliance checks and third party research/intelligence (e.g. internet and national/local media searches). It is constantly assessing the risks identified as part of its work and is looking for more and more ways to access information about payments made to and by business sectors.
In 2011/12, HMRC has already confirmed its proposed campaigns:-
- VAT rule-breakers – those trading above the turnover threshold, but who have not registered for VAT;
- Those who provide private tuition and coaching either as a main or a secondary income. The campaign will cover people providing private lessons (regardless of whether they have a teaching qualification) and could include, for example, fitness/dance/lifestyle coaches through to national curriculum subject tutors and others;
- E-marketplaces. The campaign will cover those using internet markets to regularly buy and sell goods, which are (or could be argued to be) part of a trade or business. People selling a few occasional items (i.e. not traders) are unlikely to be liable to tax and will not be targeted by this campaign; and
- Trades. This campaign will build on the Plumbers Tax Safe Plan (PTSP) and offer another group of tradespeople the opportunity to come forward and declare unpaid tax in return for a significantly reduced financial penalty.
Is now the time to disclose?
Whilst there will be future targeted campaigns and disclosure opportunities, you should not wait to disclose errors in your tax affairs to HMRC. There is no guarantee that HMRC will offer a disclosure facility that suits you or, moreover, that HMRC will not commence a formal investigation of your affairs before any such facility is offered. HMRC has assured those who voluntarily come forward and put their tax affairs in order that they can expect very similar terms to those offered via targeted campaigns and disclosure opportunities.
By approaching HMRC (rather than risking HMRC initiating an investigation), taxpayers can help reduce the potential financial penalties that could be charged and best protect themselves from potential prosecution. The risk of prosecution is real. HMRC believes that criminal charges/trials have a strong deterrent effect on those who may have evaded tax (or be considering evading tax). It intends to significantly increase the number of direct tax prosecutions in the years up to 2015.
How can OneE TDI help?
If you know or suspect that you need to disclose undeclared income, profits and/or gains to HMRC, whether they arise in the UK or offshore, you should seek specialist advice before doing so. The management of the disclosure process and the way in which the relevant facts are presented to HMRC are key to achieving maximum penalty mitigation and protecting you from further enquiry by HMRC. In addition, you can also protect yourself from being 'named and shamed' by HMRC as part of its 'Publishing the Names of Deliberate Defaulters' programme.
At the core of OneE TDI is a highly experienced team specialising in all areas of tax disputes and investigations. We offer confidential, non-judgemental and invaluable advice to best defend our clients. We have a proven track record in managing all contentious tax matters and provide an outstanding, cost-effective service which results in tangible benefits and savings for our clients. We have up-to-date knowledge of all HMRC campaigns and disclosure facilities and are able to secure the best available terms for our clients.
Putting it simply, we take control of and manage all issues relating to tax disputes and investigations so that our clients can get on with their life and their business. What price peace of mind?
Please see the Testimonials kindly provided by our clients (or their accountants or lawyers), which confirm our levels of client service.
How can I contact OneE TDI?
If you would like a free, no obligation discussion with us please contact either Gary Rowson or Mark Taylor on 0800 652 6156 or complete and submit the online form below:
Whilst we endeavour to provide informative and accurate information, the content on this site is for general information purposes only and should not be taken to constitute tax or legal advice which must always be tailored to individual circumstances. Please contact us if you would like to discuss matters.
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Future Campaigns