Tax chiefs have launched a new initiative targeting taxpayers who have failed to complete tax returns in the past.
The three-month Tax Return Initiative, which was launched on 3 July, is particularly aimed at people liable to pay tax at rates of 40 per cent and above who were asked to submit a self assessment tax return for 2009/10 or earlier, but did not do so. The initiative is also available to anyone with tax returns to submit to HM Revenue & Customs (HMRC) for these years.
They have until 2 October to tell HMRC they want to take part, submit completed returns, and pay the tax and national insurance they owe.
By coming forward voluntarily, they receive better terms, and any penalty they may need to pay will be lower, than if HMRC comes to them first.
After 2 October, if they have not submitted their tax returns and paid what they owe, HMRC will use its powers to pursue outstanding returns and any unpaid tax and national insurance. Penalties of up to 100 per cent of the tax due or even criminal investigation could follow.
