Solicitors are being given the chance to bring their tax affairs up to date or face tougher penalties, as part of a three-month tax campaign launched last December.

The settlement opportunity closes on 9 March 2015 so there is less than a week to sign up to the campaign by telling HMRC that they want to settle their outstanding tax by signing up to the campaign.

Once an individual has signed up they will have three months, until 9 June 2015, to disclose the tax they owe and pay it.

Solicitors who make a full disclosure of tax owed:

• will be offered a simple and straightforward way to put their tax affairs right, and
• will avoid paying a higher penalty. The penalty would normally be between 0% and 20%, depending on circumstances.

Solicitors who do not come forward but are found to have unpaid tax liabilities will face higher penalties, rising to 100% of the tax unpaid or, possibly, criminal investigation.

Penalties for offshore-related income can be up to 200% although based on recent HMRC agreements with holders of HSBC’s Swiss private bank 200% penalties are rarely imposed.

Online tools are available to help solicitors work out how much they owe based on tax avoidance or evasion over a five year, or even 19-year period dating back to 1993.  

The HMRC calculator for working out income tax, NICs, interest and penalties for tax years ended April 2008 to April 2013 is available at www.hmrc.gov.uk/campaigns/5years-calc.pdf

For those with tax bills dating back as far as the tax year ended 5 April 1993, the HMRC calculator is available at www.hmrc.gov.uk/campaigns/19years-calc.pdf

For more details, there is a dedicated helpline on 0300 013 4749 or visit www.gov.uk/solicitors-tax-campaign online.