NEW YEAR, NEW HMRC CAMPAIGN TARGETS SOLICITORS!

Tax avoidance has made headlines throughout 2014 and at the start of the New Year, HMRC were quick to announce their next campaign to investigate solicitors, warns Stockport accountants Bennett Verby.

Previous campaigns have targeted medical professionals, plumbers, electricians, on-line traders, landlords and health professionals. The government claims that these campaigns have to date raised over £1bn from voluntary disclosures.

HMRC is giving those solicitors who work in a partnership, company or for themselves a chance to come forward and tell them about any undeclared income.

Solicitors have until 9th March 2015 in which to tell HMRC that they would like to take part and until 9th June 2015 to disclose their undeclared income.

Previous campaigns have been successful as HMRC ensures that it has already thoroughly researched the sector it intends to target. Therefore if you have undeclared income the chances are that you are already in HMRCs sights.

For those solicitors, who have not declared all their income, it is important to register with the campaign by the 9th March 2015 and to then begin to put their financial affairs in order. Once registered solicitors will be expected to disclose their pay by 9th June 2015 and it is important to seek advice from an accountant or tax advisor as they can help you prepare and present your financial affairs to secure the best settlement terms.

Tax director at Bennett Verby, Nick Lowe (left) says:

‘If you know that you have undeclared income it is much better to open up a dialogue with HMRC and put things right. Working together with your accountant or tax advisor enables you to present your case in the correct way and ensure that your tax affairs are in order moving forward.’

For those that come forward voluntarily HMRC has already said that the penalties will be less harsh: from spreading payments over a period rather than a lump sum to avoiding the publication of your identity and a criminal investigation.