The launch of the new Managing Deliberate Defaulters programme took place on 22nd February 2011, aimed at tackling known tax evaders. HM Revenue & Customs have sent out 900 letters to known tax cheats to inform them that they will be included in the new programme. Individuals and companies who have previously evaded tax but are now compliant, will face checks from HMRC to ensure their compliance.
HMRC will monitor individuals and businesses concerned for up to five years, depending upon the severity of noncompliance. During this time, HMRC will make unannounced visits and inspections of records, request additional information and records to be submitted along with annual tax returns. Value Added Tax customers may also face submission of VAT returns on a monthly or quarterly basis. The tax affairs of anyone involved in this scheme will face at least two years of monitoring to ensure future compliance.
For anyone who receives notification of their inclusion in the Managing Deliberate Defaulters programme, it is crucial that all future record keeping and compliance with HMRC is absolute in order to avoid criminal proceedings. A small business accountancy will ensure that all records are submitted to HMRC in a timely manner, with relevant documents also filed. Online accountancy allows you to submit documents and records to your accountant immediately, to enable punctual submission to HMRC. You will also pay the correct amount of tax on time, without receiving penalties and interest, increasing the amount that you owe on a daily basis.
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