Higher rate taxpayers who have failed to submit tax returns are being offered the opportunity to come forward and pay up under a newly launched but time-limited HMRC campaign.

The ‘Tax Return Initiative’, available since 3 July, is aimed specifically at:

• individuals liable to pay tax at rates of 40% and above, and
• who have been told to submit a Self-Assessment tax return for 2009/10 or earlier, but
• have not done so.

The arrangements under the campaign are also available to any individual who has tax returns to submit to HMRC for these years.

Individuals have until 2 October 2012 to tell HMRC they want to take part, submit completed returns, and pay the tax and National Insurance Contributions (NICs) that they owe. In common with earlier compliance campaigns, by coming forward voluntarily, participants will receive better terms, and any penalty paid will be lower.

After 2 October, HMRC state that they will pursue outstanding returns and any unpaid tax and NIC. Penalties of up to 100 per cent of the tax due or even criminal investigation could follow.

According to official figures, Compliance Campaigns launched so far have yielded nearly £510 million from voluntary disclosures and over £120 million from non-compliance follow-up from a large number of civil interventions, including over 18,000 completed investigations. There are also 23 criminal cases underway.

Previous campaigns have targeted offshore investments, medical professionals, private tutors and coaches, plumbers, electricians, VAT defaulters and online traders.

For further information on the ‘Tax Return Initiative’ visit http://www.hmrc.gov.uk/campaigns/tri.htm

More information on HMRC campaigns is available at http://www.hmrc.gov.uk/campaigns/news.htm