Legislation issued in 2013 gave HMRC power to access data from organisations that process the credit and debit card transactions for UK businesses.
Last month HMRC launched the Card Transaction Programme which is a new disclosure opportunity for businesses that accept credit and debit card payments and realise that they have not declared all their sales. The programme offers the opportunity for affected businesses to bring their affairs up to date and, in doing so, take advantage of the best possible terms, in terms of reduced penalties.
Some businesses that accept card transactions are now receiving letters from HMRC asking them to check that all their income has been included on their 2015/16 tax returns. The letter states that within the next 28 days, the business needs to:
- “check the income you have included on your tax return for 2015 to 2016 is correct and go back and look at earlier years if you find a discrepancy
- if you have additional income to declare, go to cardtransactions.campaign.gov.uk which explains a straightforward way to bring your tax affairs up to date for 2015 to 2016 and earlier tax years
- if you are satisfied all income has been declared and you wish to avoid further necessary contact, please call our dedicated team on 0300 123 9272
- if you need more than 28 days to check your records, please call 0300 123 9272 to arrange more time.”
These letters are only being sent out to businesses that HMRC suspects of under-declaring income.