Contractors and freelancers who have yet to file their completed tax returns for 2009-2010 or before have been given a short and temporary amnesty by HM Revenue and Customs.
The decision comes as part of the HMRC's latest campaign against tax avoidance schemes and is most likely to affect contractors working for umbrella companies or agencies.
It gives them the opportunity to submit their returns, pay any tax which may be outstanding as well as clear any interest and penalties by October 12th this year.
The HMRC has the power to impose penalties up to 100 per cent of any unpaid tax liability if it feels the case warrants it, but it says that this will not apply to the majority of contractors.
Indeed, most will only be expected to pay existing penalties levied for late filling and the only exceptions will come where there is a suspected case of fraud.
