HMRC Targets Company Directors
16 September 2013
HMRC has launched a ‘routine review’ of company directors to ensure they are submitting their personal tax returns.Growing numbers of company directors have been informed by HMRC that they face penalties if they have failed to notify HMRC of chargeability to tax within six months of the end of the tax year involved.
Recipients of the HMRC letter are asked to provide the taxman with details of any full or part-time employments from 6 April 2006 to 5 April 2012 and particulars of self-employment. It also seeks clarification for any company directorships, company registration details and dividends taken as well as any other sources of taxable income.
Dawn Register, BDO’s tax investigations director, said: ‘This is a logical step for HMRC to take. Companies House lists all company directors and for HMRC to cross check this with their own information, is a simple and cost effective way of ensuring that all those who should have filled in personal tax returns, have done.
‘This is just further evidence of HMRC cracking the whip on those who haven’t met their tax obligations. Company directors, especially those involved in start-ups, who might be new to the process, should ensure that they are fully aware of their tax obligations as even an administrative error could lead to a significant fine.’
The initiative follows on from a number of HMRC campaigns targeting suspected tax evasion among specific groups and sectors across theUK, including chief constables, lawyers, tradesmen and fast food operators.
A spokesman for HMRC, said: 'This is part of our day to day work, reminding customers of their obligations to notify us of any untaxed income due by the 5th October. Any one who needs help is welcome to get in touch with us.'