Are you up to date with your tax returns?

HMRC has launched a campaign running until 2 October 2012 targeting taxpayers who have failed to submit their tax returns.

Those who voluntarily take part in the campaign and pay any tax due by the 2 October deadline, may avoid the normal penalty of up 100% of the tax owed. By taking this decision, people will receive the best terms on offer

Failure to submit tax returns, hasn’t just stemmed from those failing to submit a tax return, there are thousands of taxpayers who have perhaps taken HMRC’s estimate of their tax liability as gospel and decided they don’t need to file anything. Unfortunately this isn’t the case.

The incorrect filing of a tax return, whether it’s late or inaccurate could be deemed by HMRC as evidence of a higher risk of there being additional  income not disclosed and potentially spark a tax investigation. It may be that the system of self-assessment and online filing can be confusing for some, and have taken the approach of sticking their head in the sand hoping it will go away, however it’s not a risk worth taking in light of this new campaign.

We would recommend anyone that is worried about whether they need to file a return, to seek advice from a tax expert while the campaign is ongoing.

As they say, tax doesn’t have to be taxing.