20 Oct 2014
A new campaign has been launched by HM Revenue & Customs (HMRC) to update tax records for businesses that accept credit card payments.
The opportunity to bring tax affairs up to date is being directed at those businesses or individuals who have declared some but not all of their income, in a similar way to other disclosure opportunities offered by HMRC in their bid to amenably settle tax bills.
HMRC has said that a penalty of 0%, 10% or 20% may be added for a full disclosure, dependent on circumstances. Offshore liabilities will face higher penalties. HMRC expects businesses to be upfront what penalty they believe they must pay.
There is no end date to this campaign, but businesses are encouraged to act now in order to make use of the best terms – those who are known to have outstanding tax liabilities must make their declaration within four months.
A guide to making your disclosure can be found on the HMRC website here.