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HMRC have launched yet another initiative aimed at encouraging taxpayers to come forward with previously unrevealed earnings.
The tax catch-up plan is aimed at educators of all kinds – those who profit from tuition and coaching as a main or secondary job – but who have not put up their hand to fully disclosed their income to the Revenue.
It follows similar schemes of late, one of which targeted doctors and dentists and another that focused on plumbers and associated trades. Traders who are unlawfully not registered for VAT are currently the subject of a disclosure campaign by the taxman.
The latest opportunity is available to all those who teach, regardless of qualifications, meaning it covers not only tuition of traditional academic subjects, but also fitness and dance instruction, musical tuition, and services provided by life coaches.
The plan has two stages:
- From 10 October 2011 to 6 January 2012, individuals must register with HMRC to notify they department that they plan to make a voluntary tax disclosure. Registration can be done online or by telephone on 0845 601 8817.
- By 31 March 2012, those who have registered must tell the Revenue what they owe and pay the tax, interest and penalties.
Taxpayers who come forward by the deadlines are likely to receive the best possible terms for paying the sums owed. Penaties are unlikely to be more than 20% of the unpaid tax.
Those who wait for the Revenue to come to them will find they have to pay much higher fines and may face criminal prosecution, the taxman warned.
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