Not Made Tax Returns
It has been announced that HMRC are to target those people and companies who have usually made tax returns but haven‘t so far.
They will particularly target those who are on the higher rate of tax who have missed their annual tax returns.
One understands what they are trying to do here. They want to target those who have stopped paying tax but still earning money.
Caught by HMRC
However, caught in this net may well be IT contractors who are out of work or those who have delayed their tax returns. That’s either because of slackness. It may also be because they can‘t afford to pay either their tax or their accountant or both.
All HMRC needs to do is sit in front of their computer screens and do a search for companies, or people, who have paid tax for X previous years or more and have not made a return this year.
Once they get all those names in front of them on their screens they can then select those whose returns were £X or more in previous years and then select the most juicy of them and pay them a call.
Many Happy Returns
Isn‘t technology great?
IT contractors should make sure that they make their returns, working or not. Don’t take the risk of all sorts of things popping out of this Pandora‘s Box including IR35 investigations.
Better to be safe than sorry!
Those that have not made tax returns who usually do could be getting the knock on the door from HMRC.