Early in September, my editorial Twist or Stick - Disclosing Early to HM Revenue & Customs looked at HM Revenue and Customs (HMRC) campaigns aimed at 'customers' in specific risk areas of tax loss. Previous campaigns have targeted offshore investments, medical professionals, plumbers, and those trading above the VAT threshold who have not registered for VAT.

The latest HMRC campaign ('The Tax Catch Up Plan') was launched on 10 October. It targets tutors and coaches who have undeclared tax liabilities. The campaign covers academic and musical tutors, fitness and dance instructors, and life coaches among others.

HMRC stated in its News Release announcing The Tax Catch Up Plan:

"Those who come forward by the deadline are likely to receive the best possible terms for paying the tax owed. If they have to pay a penalty, it is unlikely to be more than 20 per cent of the unpaid tax. Those who wait for HMRC to come to them will find that they have to pay much higher penalties, or even face criminal prosecution. After 31 March, using information pulled together from different sources, HMRC will investigate those who have chosen not to come forward."

However, HMRC's News Release later pointed out the following:

"The terms being made available during this window are in line with those HMRC offers for any full and accurate unprompted voluntary disclosure of tax liabilities."

The latter statement suggests that any taxpayer with undeclared tax liabilities can come forward now, and receive similar terms to tutors and coaches who use the Tax Catch Up Plan.

If so, what is the purpose of targeted campaigns aimed at particular sectors? Why not just launch publicity campaigns to encourage voluntary disclosure by all taxpayers?

Are these campaigns just scaremongering, or am I missing something here? Perhaps someone, preferably from HMRC, could enlighten us all.

Article Added Saturday, 22 October 2011 | 291 Hits

Your attention is drawn to the disclaimer on this site, which applies to the content in this section.