Posted on 27 March 2017
In their latest clamp down on tax evasion, HMRC have announced a new credit card transaction disclosure programme allowing businesses who accept card payments to bring their affairs up to date if they have not made a full disclosure to the HMRC.
The new programme, which will offer those who enter it reduced penalties, starts with disclosure relating to an individual’s or partnership tax affairs. Each person must make a separate disclosure via HMRC’s digital service. Once a reference number has been provided, there are 90 days to disclose and pay any outstanding tax.
HMRC say that some people who use the disclosure scheme may not have pay a penalty, but those who do not could face penalties of up to 100% of unpaid liabilities or up to 200% for offshore related income.
HMRC also warn that it has the powers to obtain information on businesses from card processing operators.
Head of Tax at Smith Cooper, Jackie Hendley, commented: “The Revenue has kept a spotlight on tax evasion and avoidance schemes and their targeting of individuals and businesses in various sectors has proved a fruitful area of the past few years. This, coupled with a continuous stream of high-profile avoidance cases in the media means that HMRC’s fight against what they class as abuse remains intense.
“We would recommend that all tax payers seek advice from a trusted tax expert to ensure their tax affairs are in order. HMRC can be expected to look closely against anything they deem to be unacceptable so seeking guidance is paramount if tax payers wish to avoid lengthy and costly investigations and penalties.”
Smith Cooper are a Midlands based accountancy and business advisory firm who specialise in providing tax compliance and advisory services as well as advice on tax investigations.