If HMRC have sent you a Self Assessment tax return or notice to complete a tax return for 2009-10 or earlier and you have not yet taken any action, HMRC are offering a quick way to bring your tax affairs up to date.  Any person who has been sent returns or a notice to file a return for the years 2009/10 or earlier, but who has not yet done so, is encouraged to take advantage of this opportunity to secure better terms and pay a lower penalty than would apply if HMRC comes to them first.

To take part in the Tax Return Initiative you need to tell HMRC that you intend to do so by completing a form and providing this to HMRC.  You then need to complete and submit your late tax return and pay what you owe by 2 October 2012.  For those individuals who need to register for self assessment, it is recommended that this is done as quickly as possible in order to meet the 2nd October deadline.

• If your returns are late you will already have been told if any fixed penalties are due. £100 is charged when a return is late with another £100 for returns that are still outstanding six months later. Interest and surcharges are also payable on any tax paid late.

• HMRC can also charge a penalty based on the amount owed. This can be as much as 100 per cent of the tax, however, in some circumstances this can be reduced to nothing. By taking part in the campaign, people will receive the best terms on offer and HMRC expects that most will not have to pay this penalty.

• If you cannot afford to pay what you owe all at once, don’t worry. If your circumstances warrant it, you will be able to spread the payments.

This is an opportunity to bring your tax affairs up to date.

We will be happy to help you with this if you wish to take advantage of this opportunity and require assistance in doing so.  Please feel free to contact us to help you bring your tax affairs current.