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HM Revenue & Customs is going to be extending its tax campaigns to target other trades. Following the recent launch of a campaign aimed at businesses who are trading above the threshold of £73,000 for VAT without registering with HMRC, the tax man will now be concentrating on online traders and tutors.
During 2011-12, campaigns will be launched to target private tutors and people who trade online. Professionals who earn an income by coaching or tutoring will be targeted, whether it is their main or supplementary income, to help them pay the correct amount of tax. The campaign may target a range of people from health and fitness instructors, lifestyle coaches and dance tutors to tutors in national curriculum subjects.
Traders who use online market places and buy and sell goods without paying tax will be targeted, although people who are not traders and only sell minimal goods will be exempt from the investigations.
As the partial amnesty for the plumbing and gas fitter industry has been successful, HMRC are now offering the same terms to other groups of trades people. The voluntary disclosure schemes have so far raised in excess of £500 million, and another £100 million from the follow up of enquiries. The director of Risk and Intelligence for HMRC, Mike Wells said:
“We will use the information we gather to pursue people who choose not to use the opportunities we provide for them to put their affairs in order on the best possible terms. It will be more expensive if we come and find people, so I urge them to come forward and disclose voluntarily.”
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