News: December 2011
Tax catch up plan
We are always delighted when you kindly refer a new client to us. It shows us we are providing the service to you that we always strive for, and we then try and do our best for the person you have referred.
One area where we can help is when you come across someone who for whatever reason has not declared all of their income – or perhaps fears that may be the case. The latest HMRC initiative aimed at such a person is the Tax Catch Up Plan. Although it is primarily targeted at those delivering tuition and coaching or who use those skills in another way to supplement income, this initiative can also be used to cover any situation where income has not been declared.
The incentive to using this new plan is a substantial reduction in the level of penalty usually charged. We will always try and get the penalty reduced to the lowest possible – that can be NIL, 10% or 20% of the tax outstanding, depending on the circumstances.
That will save a lot of money as normally the penalty for paying too little tax can be as much as 100% of the tax. There is a deadline of 6 January 2012 to notify participation in the Tax Catch Up Plan.