Credit Card Sales campaign launched
HMRC has launched a new campaign that offers individuals and businesses, who accept credit and debit card payments, the opportunity to bring their affairs up to date. Any individual or company that accepts credit and debit card payments should be registered with HMRC and have declared all of their income including sales settled by credit and debit cards. This disclosure opportunity, known as the Credit Card Sales campaign, offers the chance for businesses to bring their affairs up to date in a simple, straightforward way and take advantage of the best possible terms.
The procedure for taking part in the campaign closely follows that of many other recent disclosure opportunities. There are a number of steps involved in taking part in this disclosure opportunity. The first is to notify HMRC that you want to take part in the Credit Card Sales campaign. Taxpayers must then make a full disclosure about all income, gains, tax and duties within four months from the time a notification acknowledgement is received. This is followed by making a formal offer, payment and co-operating with HMRC.
Interestingly, those making a disclosure are asked to tell HMRC how much penalty they ought to pay. However, HMRC guidance states that penalties for a full disclosure made as part of the campaign will usually be levied at 0%, 10% or 20% depending on the circumstances. There are higher penalties for offshore liabilities.
HMRC has details of all credit and debit card payments to UK businesses and will use this information to identify taxpayers who might not have declared all their income. Taxpayers who are contacted first by HMRC will not have the opportunity to use the terms of this campaign. Penalties of up to 100% of the unpaid liabilities, or up to 200% for offshore related income could then be levied along with the risk of criminal prosecution in serious cases.
Any of our readers who may have liabilities relating to this opportunity are advised to contact us as soon as possible to discuss the implications of making a disclosure.