Your questions on tax answered here
Here is an update on the HMRC Second Incomes Campaign
I’ve heard that HMRC is planning to target people who have second jobs but don’t declare any income to HMRC. Is this correct?
Mrs S, Bexhill
UK taxpayers have always been required to declare all taxable income to H M Revenue & Customs. What you have most likely heard about is the Second Incomes Campaign.
The campaign offers individuals the opportunity to inform HMRC that they have undeclared income from another income stream. The campaign mainly targets individuals in employment who have an additional untaxed source of income.
The HMRC guidance lists the following possible examples:
income from activities such as taxi driving, hairdressing, providing fitness training or landscape gardening;
fees from consultancy or other services, such as public speaking or providing training;
payment for organising parties and events or providing entertainment;
profits from spare-time activities such as making and selling craft items; and
profits from buying and selling goods, for example regular market stalls, boot sales, etc.
There is currently no end date for this campaign but taxpayers that make a disclosure will have four months to calculate what they owe and to make a payment to HMRC.
HMRC have the power to charge penalties on top of any tax due. Making a disclosure to HMRC as part of the campaign will allow taxpayers to take advantage of the best possible terms to reduce any penalties to a minimum.
HMRC will continue to focus on non-compliant taxpayers that choose not to take up the opportunity to gain from the campaign. HMRC may formally investigate taxpayers that did not come forward under the disclosure facility or who they believe have made an incomplete or wrong disclosure.
Taxpayers that are targeted by HMRC could face penalties as high as 100% of the additional tax due (200% for offshore related income) and there is also the risk that HMRC may carry out a criminal investigation.
If you would like to discuss your circumstances in greater detail, Ashdown Hurrey can advise on this matter in addition to other tax, accountancy and business matters. Contact Martin Copland on 01424 720222 or email him at [email protected]