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HMRC’s long-awaited disclosure opportunity for online traders has been launched, nine months after it was first reported that the department was set to target users of eBay.
The Revenue refused last June to discuss whether or not it was indeed scrutinising the popular site, but it did announce last month that it would open a so-called tax amnesty for e-marketplace traders who have not previously disclosed their profits
Under the new initiative – which is explained in a YouTube video – taxpayers will be able to come forward at any time between 14 March and 14 June to register their desire to take part.
They will then have until 14 September to provide details of the money they owe the taxman, and to arrange full payment, including interest and penalties.
In some cases, a full and timely disclosure will result in no fine, while most participants will be expected to pay no more than an additional 10% of their debt.
Further details of the e-market initiative can be found on the HMRC site, and the department will hold a Q&A via Twitter on 28 March. Follow @HMRCgovuk.
The launch of the ‘amnesty’ – the third of its kind this year – led to the Chartered Institute of Taxation (CIOT) repeated its call for a general disclosure facility to allow all taxpayers to put straight their dealings with the Revenue.
The professional body has been pushing the idea since 2007, and said it was ‘delighted’ when such a measure was recommended last week by MPs
In its report Closing the Tax Gap: HMRC’s Record at Ensuring Tax Compliance, the Treasury select committee advised, ‘If there was a clearly signposted and easy-to-use disclosure facility… this might encourage people to regularise their tax affairs’.
The CIOT’s Gary Ashford, who represents the organisation on HMRC’s compliance reform forum, warned of ‘a danger that the conveyor belt of disclosure facilities aimed at different groups will make others who wish to get their tax arrears in order wonder whether they should wait for their opportunity.
He added, ‘Rather than continuing to launch different targeted campaigns every few weeks, the Revenue should focus its efforts on a big national campaign open to all taxpayers whose affairs are not up to date: a one-off disclosure that lasts sufficiently long and is sufficiently attractive to get people to come forward to clean the slate.’
