HMRC campaigns provide you with the opportunity to tell HMRC about any undisclosed income – essentially you have a window of opportunity to voluntarily put your tax affairs in order and pay what you owe. But be warned that if you owe tax and don’t come forward, it could cost you significantly more if HMRC track you down later.
Two specific campaigns are currently running until 28th Feb 2013:
VAT Outstanding Returns: VAT registered businesses who have one or more returns outstanding have until the end of February to file online and remit payment, and if you do so, HMRC will look favourably on any penalties due. However, if you don’t file any overdue VAT returns before this date, the account will be automatically flagged to the taxman, and you’ll find yourself on the naughty list, where more severe penalties are commonplace.
Did you know that paying your VAT bill online by Direct Debit gives you 10 extra calendar days to pay your bill – much better for cashflow!
Direct Selling: If you are involved in direct selling on a self-employed basis (e.g. door to door or in a customer’s
home/office, for example make-up or cookware parties, usually earning commission on the sales you create) then HMRC is offering an olive branch for you to get your tax affairs up to date. If you make a voluntary disclosure about income not previously declared – and pay any tax due – then HMRC will offer their most favourable settlement terms. There’s a useful HMRC YouTube video about your responsibilities as a direct seller – we’ve posted a link on our website on the self-employment pages.
The next HMRC campaign starts in March 2013 and targets those who have undeclared Capital Gains Tax to pay – so if you have sold a property other than your main home, in the UK or overseas, now is the time to tell the taxman and minimise penalties.