Tutors, eBay sellers and tradesmen become tax targets

Thursday, June 16, 2011 | Posted by: Fiona Cullinan
Categories: Business | Tags: tax, HMRC, disclosure, penalties, tax amnesty, amnesty, teachers, eBay, tutors

Three more groups who are perceived to be underpaying tax are to come under the scrutiny of the taxman.

HM Revenue & Customs (HMRC) made its announcement this week [14 June 2011] and identified the following groups:

• E-marketplace traders, including eBay who have not fully declared their income from this activity.
• Private tutors and coaches, including both academic and fitness instructors.
• Tradespeople who have not been covered by the recent plumbers’ tax amnesty aka the Plumbers Tax Safe Plan (PTSP).

We don’t yet know when these campaigns will start. However it is hoped that they will be combined with a disclosure opportunity, whereby there will be a specific time period in which to come forward and that those who come forward voluntarily will receive favourable terms and mitigated penalties in exchange for coming clean on any undeclared income and gains.

That’s the carrot. But there is also a potential stick.

HMRC has apparently invested in new technology to seek out those underpaying tax. Its new web-trawling tool is said to identify mismatches between the lifestyle and expenditure of individuals and businesses and what is declared for tax purposes, and from there collect any undisclosed tax.

For the full story, read our media release: HMRC announces three further tax amnesties.

You might also like to read up on previous disclosure opportunities and tax ‘amnesties’ in the links below.

And if you are affected by the new campaigns and considering coming forward, it is important to take specialist advice on your next step and whether this is right for you or your business. Contact your local Grant Thornton office for further information and advice.

You might also find these posts useful:

* Plumbers tax amnesty could open floodgates for all
* Read our Tax Investigations page for further information on PTSP and other disclosure opportunities
* How an HMRC letter about £3,000 of income turned into a £275,000 tax bill
* Read more tax amnesty stories