HMRC Disclosure Campaigns
Background
HM Revenue & Customs (“HMRC”) have launched a number of “campaigns” over recent years to give taxpayers the opportunity to come forward and declare any undisclosed income and tax that they might owe. Each campaign has targeted a specific group of taxpayers or a particular type of activity.
Most campaigns have now closed however HMRC have recently updated their guidance for the “digital disclosure service” which can be used in more general circumstances. We set out below details of the current campaigns which are still open and explain how to contact HMRC to ‘come clean’ on any arrears of tax or undeclared income if relevant.
Detail
The purpose of HMRC’s campaigns is to encourage taxpayers to come forward voluntarily to bring their tax affairs up to date if they need to. In return they will benefit from lower penalties than they would otherwise pay if HMRC had to approach them first.
HMRC currently has three campaigns in operation and, unlike some previous campaigns, at present there are no closing dates for taking advantage of these.
- Let Property Campaign : aimed at individual landlords letting out residential property in the UK or abroad who have not declared their letting income.
- Second Income Campaign : aimed at individuals resident in the UK who have additional freelance or self-employed income that isn’t taxed through their main job or another Pay As You Earn (PAYE) scheme.
- Card Transaction Programme : aimed at those in business who accept credit or debit card payments but have not declared that income to HMRC.
In each of these cases, the taxpayer is required to notify HMRC and then make a disclosure. Any tax owed must be paid within 90 days of the date that HMRC acknowledge the notification. The taxpayer has to self-assess the tax due and any penalties, although each campaign does offer its own helpline. Depending on individual circumstances, HMRC may allow time to pay.
If a disclosure is required that does not fall under one of the current campaigns as outlined above then HMRC’s online Digital Disclosure Service can be used, and is available to both individuals and companies.
If you would like any further information or advice in connection with the above, or assistance in making a disclosure, please contact our Tax Director, Jenny Marks.
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