October is an important month for personal taxes.

1 October marks the start date for the online version of HMRC's ‘New Disclosure Opportunity' (NDO). This is a second chance to come clean on undisclosed offshore accounts and assets, settling outstanding tax with a specially reduced penalty rate. The launch of the initiative follows on from legal action in August when HMRC ordered over 300 banks to give details about their customers who hold offshore accounts. A £1m HMRC advertising campaign is now underway.

The NDO will run until 12 March 2010, but past experience of 2007's Offshore Disclosure Facility suggests that an early start is advisable given the difficulty there can be in obtaining information.

5 October could be a significant deadline for you if you have not received a 2008/09 tax return. In such circumstances the law says that if you had a new source of income or realised capital gains above your £9,600 annual exemption in the last tax year, you must inform HMRC of the fact by 5 October.

31 October If you are not going to use the internet to file your 2008/09 tax return, then as a general rule you must send in your paper return by 31 October or face a penalty. File by internet and you can still procrastinate until 31 January 2009. However, given HMRC's past systems problems, leaving it until the last minute is not to be recommended.

ACTION

Don't ignore the taxman. With government finances in a dire state, HMRC are making strenuous efforts to pull in as much tax as possible. If you need a further incentive, then look no further than HMRC's new penalty regime, which came into effect in April.

 

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This news item is provided strictly for general consideration only and is based on our understanding of law and HM Revenue & Customs practice as at August 2009. No action must be taken or refrained from based on its contents alone. Accordingly no responsibility can be assumed for any loss occasioned in connection with the content hereof and any such action or inaction. Professional advice is necessary for every case.

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