HMRC campaigns update
HRMC has recently published an update on the amount of tax they have collected since the introduction of the current batch of targeted campaigns against tax avoidance which began with the Offshore Disclosure Facility (ODF) in 2007. The ODF (and subsequent New ODF) targeted taxpayers with unpaid taxes linked to offshore accounts or assets.
HMRC’s approach since 2007 has revolved around offering specific targeted campaigns rather than general tax amnesties. HMRC have so far targeted specific sectors and areas including property sales, plumbers, electricians and members of the medical profession. In total HMRC says that they have collected almost £1bn in additional tax as a result of these campaigns ranging from £500k for the direct selling campaign to £668m from the ODF and New ODF campaigns.
There are four current HMRC campaigns:
- Solicitors Tax Campaign
- Credit Card Sales Campaign
- Second Incomes Campaign
- Let Property Campaign
Making a disclosure can significantly reduce the amount of penalties due and should avoid the possibility of criminal investigations taking place. Most disclosures will be subject to a penalty rate of 10% with a maximum rate of 20%. Taxpayers that currently have undisclosed taxable income are advised to consider the benefits of making a disclosure under the plans currently on offer.