 FAQs on the tuition and coaching ‘Tax Catch Up Plan’ (TCUP)
If your question is not answered below, call us in confidence now on 020 7065 0455 to discuss your options or contact us online.
How can you help me?
How much will it cost me?
When do I have to pay?
What happens if I can’t afford to pay?
Can anyone use the TCUP?
What is the benefit of using the amnesty?
Will using the amnesty keep me out of jail?
When do I have to register?
What happens if I do not use the amnesty?
How can you help me?
Our experts can help you use the amnesty efficiently to ensure you only pay what you owe and no more. We will guide you through the process by helping you piece together information to assess what you have under declared in the past and calculate how much tax you owe for those past years. We will complete the disclosure paperwork on your behalf and advise you how much you need to pay.
Call a PKF Tax Investigations specialist in confidence now to discuss your options or contact us online.
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How much will it cost me?
That depends on how much of your income has not been taxed correctly in the past and whether you have deliberately misled HMRC or have simply got in a mess with your record keeping and made mistakes on your tax returns. Our charges for helping you to use the amnesty will also be based on how many past years there are to be put right and how much reconstruction work is required.
Call a PKF Tax Investigations specialist in confidence now to discuss your options or contact us online.
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When do I have to pay?
Provided you register for the amnesty by 6 January 2012, the settlement payment covering the tax plus interest and the reduced penalties must be made by 31 March 2012.
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What happens if I can’t afford to pay?
HMRC is prepared to accept payment in instalments in many cases but it will be necessary to negotiate such arrangements before submitting your full disclosure document. We have considerable experience of negotiating time to pay arrangements and can assist you in this process.
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Can anyone use the TCUP?
The TCUP is only for individuals who have underpaid tax on income from tuition or coaching. It cannot be used by those who have underpaid tax on other sources of income, even if they have received income from tuition or coaching activities in the past.
It is still possible to make a voluntary disclosure about unpaid liabilities outside the TCUP but the penalties applied will be higher than those under the TCUP. However, individuals who make a full voluntary disclosure of all unpaid tax liabilities can still expect a lower penalty than HMRC would otherwise seek if it catches up with you through a tax investigation or compliance check.
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What is the benefit of using the amnesty?
The reduced tax penalties are the best part of the deal for individuals but it is important to remember that bringing your tax affairs up to date removes the risk of an expensive and time consuming tax enquiry instigated by HMRC.
For individuals who have underpaid tax because of making careless mistakes with their tax returns or have forgotten to tell HMRC that they have started up in business, tax penalties will be limited to between zero and 10% of the tax due - cheaper than a penalty of up to 30% that could normally be charged in such situations.
For individuals who have deliberately understated their income or not told HMRC that they have started trading, tax penalties will be limited to 20% - a bit more expensive than previous amnesties, but still much cheaper than the penalties of 30% to 70% that can otherwise be charged if HMRC catches you out.
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Will using the amnesty keep me out of jail?
There is no absolute guarantee that you will not be prosecuted if you come clean on tax irregularities using the amnesty but HMRC has said it is much less likely to prosecute individuals who have voluntarily owned up to tax mistakes or misleading it.
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When do I have to register?
You must register to use the TCUP by the 6 January 2012.
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What happens if I do not use the amnesty?
HMRC has legal powers to obtain details of payments made by, for example, academic institutions and sport and leisure organisations about payments they have made. HMRC also has access to advanced technological tools, which it can use to help identify people who have failed to pay the correct amount of tax.
HMRC will use this information to identify those who it believes should have come forward under the TCUP and is likely to undertake compliance checks or enquiries. Where these show that additional tax is due, HMRC will seek much higher penalties than those available under the TCUP. The penalties can be up to 100% of the unpaid tax and are likely to be at least 30%. HMRC may also consider whether a criminal investigation is necessary.
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