Partner Article

Opportunity for solicitors to admit tax errors

Following a surprise announcement by the HMRC, chartered accountancy firm Clough & Company is advising any solicitors who have not fully declared their income in recent years to take advantage of HMRC’s latest amnesty, which allows them to come clean about any discrepancies and face significantly reduced penalties.

This follows several other highly successful voluntary disclosure campaigns by HMRC that have targeted a wide range of professions including doctors, dentists, online traders, plumbers and landlords. These campaigns are estimated to have raised more than £1bn.

As part of this latest amnesty solicitors have until 9th March 2015 to declare their participation and any outstanding tax must be paid by 7th June 2015.

Nigel Westman, partner at Clough & Company, explains: “HMRC has said that it is looking at solicitors in particular because it has data and intelligence which suggests there could be significant numbers within the profession that have failed to fully declare their income and pay the correct amount of tax. “As in previous campaigns, anyone making a voluntary disclosure will face very lenient penalties.

However if HMRC finds discrepancies at a later date, the penalty could be 100% of the tax due and in extreme cases they could even face a criminal prosecution, so it makes sense to come forward now.“

This was posted in Bdaily's Members' News section by Steven Wright .