HM Revenue & Customs (HMRC) released a statement on the 4th June 2015 stating that solicitors will have until the 9th of June 2015 to pay off any tax they owe on undeclared income. Failure to do so may result in penalties. The aim of the Solicitor’s Tax Campaign is to allow all solicitors, working as a part of a company, partnership or individually, the opportunity to declare additional income (‘Voluntary Disclosure’) and bring their tax affairs up-to-date. Those who do not pay their outstanding tax by the deadline will be subject to 100% of the fine, usually 0%, 10% or 20% depending on the circumstances (or more if offshore income has not been declared). Caroline Addison, Head of Campaigns, HMRC, said: “This disclosure scheme gives firms a fair chance to come forward and avoid tough penalties, but we will not hesitate to investigate and penalise those still evading tax they owe once this opportunity passes…We don’t think it’s too much to ask that solicitors abide by the law and pay the tax they owe”.
Alerting HMRC of undeclared income
All solicitors that have income to disclose were required to notify HMRC by the 9th March 2015Solicitors were then required to disclose their undeclared income and make payment by the 9th June 2015.
If you have not filled in a notification form
If you have not filled in a notification form, you can still call HMRC and declare your income. You will have to pay a penalty; however, this will still be lower than if HMRC were to investigate and find out about any penalties at a later date. You can work out how much you owe by using the HMRC Interest and Penalty Calculator.
To find out more information on how to make your voluntary disclosure, please click here or call the Solicitors Tax Campaign helpline on 0300 013 4749.