HMRC’s new campaign is aimed at businesses

HMRC launched another targeted campaign on 13 May 2016. The Credit Card Sales campaign is aimed at individuals and companies who accept card payments as part of their business and have undisclosed transactions.

The advantages of coming forward under the Credit Card Sales campaign are as follows:

• a streamlined process allowing individuals and companies to disclose business takings as well as other liabilities – for example, potential VAT exposure or tax liabilities arising on non-business income;

• whilst the campaign refers to businesses who accept card payments, in order to qualify under the terms of the campaign, the additional liabilities do not necessarily have to arise due to the card payments;

• a specific and short time line – once registered, HMRC will expect the disclosure within four months; and

• a favourable penalty settlement as set out below:
 
Behaviour  Penalties for making an inaccurate return   Pre 2009/10 Tax Years / AP ending pre 01/04/08 Tax Years 2009/10 onward/  AP ending post 31/03/08 
Careless Voluntary Disclosure No penalty No penalty
Prompted by HMRC No penalty 15-30%
Deliberate Voluntary Disclosure 20%* 20%*
Prompted by HMRC Up to 100% 35-70%
 
Behaviour Penalties for failing to notify HMRC Pre 2010/11 Tax Years / AP ending pre 01/04/2010 Tax Years 2010/11 onward / AP ending post 31/03/10
Not Deliberate Voluntary Disclosure 10% 10% (0% if notified within 12 months of when the tax was due)
Prompted by HMRC Up to 100% 20-30% (10% if notified within 12 months of when the tax was due)
Deliberate Voluntary Disclosure 20%* 20%*
Prompted by HMRC Up to 100% 35-70%
*May be increased to 100% if deliberate and concealed.

The Moore Stephens Tax Investigations team can assist you with the above and would be happy to answer any queries on a confidential, no-obligation basis.

Please contact us on our 24-hour helpline on 0207 651 1400 or at taxinvestigations@moorestephens.com