Are you working in the legal profession as a sole solicitor or as a partner a limited liability legal company?
If the answer is yes, then Steven Glicher accountants has some news which may be of interest to you. The Government has just launched its ‘Solicitor Tax Campaign: a campaign designed for those working within the legal profession who want to bring their tax affairs up-to-date.
The new government initiative is specifically aimed at those solicitors who haven’t yet informed HMRC about their past income, gains and undisclosed liabilities.
So how is this new initiative going to work? Well, any solicitors working for themselves in their own business, within a partnership or limited liability partnership or within a company have been given until 9th March, 2015, to notify HMRC of their intent to disclose their outstanding taxes and duties. If they then agree to pay their dues by 9th June, 2015, they will receive the following guarantees:
- They will be able to tell HMRC how much penalty they believe they should pay; however what they will ultimately pay will depend on why they have failed to disclose their income in the first place. If they’ve deliberately kept information from HMRC they will be asked to pay a higher penalty than if they’ve simply made an error.
- If they can’t afford to pay what they owe in one lump sum, then HMRC are willing to make arrangements for them to be able to spread their payments over a longer period of time if circumstances warrant.
- If they’ve simply made an error through carelessness, then regardless of how many years they are behind with their tax affairs, HMRC will limit their repayment to a maximum of 6 years. However, if they fail to own up and HMRC later finds out that they are not up-to-date with their tax affairs, then it will be difficult to convince the tax authority that their only error was making a mistake. In these circumstances the 6 year maximum penalty payments will not apply.
Once you have notified HMRC of your intent to disclose your tax liabilities HMRC will write to you confirming your unique Disclosure Reference Number.
You must use this unique number whenever you contact them about the Solicitors’ Tax Campaign. You are able to make a disclosure about your own tax affairs, on behalf of someone else or on behalf of your company as soon as you have received your Disclosure Reference Number, or at any time after that but before 9th June 2015. To make a disclosure you must complete and submit the form D02 Disclosure.
If your tax affairs are completely up-to-date, then you needn’t worry about this latest government initiative. If, however, you have any undisclosed tax or duties, then Steven Glicher’s accountants would strongly advise you to use this Campaign to disclose them. By being open and honest with the tax authority you will be more likely to get the best possible terms for settlement. If you wait for HMRC to approach you, then the consequences, which might involve criminal investigation, could be severe. For further information, call Steven Glicher accountants on 0161 485 8007 or email info@