HMRC announced on Wednesday 8 February that it intends to launch two further campaigns before the end of the 2011/12 tax year. The people being targeted are:
- traders buying and selling goods online; and
- electricians (involved in the installation, testing and maintenance of electrical equipment and appliances)
that have not declared all their income.
The purpose of the campaigns is to give the people the opportunity to bring their tax affairs up to date by paying the tax they owe as well as the interest and a tax-geared penalty.
People that decide not to come forward run the risk that HMRC will use new technology to compare the returns filed by traders against the information it has obtained from third parties and will investigate any irregularities that are found. Anyone found to owe tax will face significantly higher tax-geared penalties and in the most serious cases may also be subject to a criminal investigation.
In a further statement of intent, HMRC announced it intends to target people that should be paying tax at the higher rates and are not filing tax returns.