Less than a week to pay up in solicitors' tax crackdown
Solicitors have less than a week to pay any tax owing on undeclared income before they face hefty penalties, HM Revenue & Customs has warned.
In a campaign launched last December, HMRC offered a "window of opportunity" to solicitors to get their tax affairs in order. Those affected had to contact HMRC by 9 March to say they wanted to make a disclosure, and have until 9 June to do so and pay any tax due.
Any penalties following a voluntary disclosure will be lower – normally between 0% and 20%, depending on circumstances – than if HMRC has to investigate their tax affairs. Anyone who does not pay what they owe faces a penalty of up to 100% of the tax due, or more if it is offshore income.
Caroline Addison, head of campaigns at 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.”
Previous campaigns have included medical professionals, plumbers, tutors and coaches, electricians, online traders, landlords and health professionals. These have raised over £1 bn from voluntary disclosures and HMRC follow-ups.
For more information, plus help and support on the campaign, solicitors can phone a dedicated helpline on 0300 013 4749 or visit www.gov.uk/solicitors-tax-campaign.