HMRC have launched their second tax amnesty of 2011, this time focusing on the undeclared taxes of tutors and coaches.
Following on from the Plumbers Tax Safe Plan launched in March 2011, the Revenue have turned their attention to those who have a sideline (or a main job!) in tutoring and coaching on a cash-in-hand basis and have not paid the correct amount of tax. If this seems like a small slice of the £35billion ‘lost revenue’ pie, HMRC have confirmed that anyone, tutor or not, who feels they owe backdated taxes can make a disclosure under this facility, subject to certain specific exceptions.
In exchange for a voluntary disclosure, HMRC have agreed to cap their usual 100% penalty to a maximum of 20% of the tax owed. In many cases this penalty could be reduced to nil, if it is found that the tax was unpaid as a result of a careless omission.
Whilst most people can be confident that they are paying the correct amount of tax through payroll, this could be an important facility for entrepreneurs who, in their focused attempts to get a business off the ground, may have let their tax liabilities fall by the wayside. Equally, as our tax regime gets ever more complicated, errors and omissions can creep in to the affairs of even the most conscientious taxpayer.
Now is the perfect time to review your tax affairs and ensure everything is in order.
If you would like our assistance with this, or in making a disclosure using the Tax Catch Up Plan, please contact us at the earliest opportunity.
