HMRC have launched a further campaign to encourage individuals with any undisclosed income from past years to come forward and declare such income. The campaign is based on the proposition that the penalties will be less if you own up before you are found out! They are offering “favourable” penalty rates, generally a maximum of 20% of the tax due, for coming forward voluntarily (whereas they could be up to 100% if HMRC come after you).
The new campaign is called ‘Second Income Campaign’ and is aimed mainly at employed people who have other sources of income and should have filed a Self Assessment Tax Return to disclose this. Examples of the sources of income they expect to be disclosed are:-
•fees from consultancy or other services such as public speaking or providing training
•payment for organising parties and events or providing entertainment
•income from activities such as taxi driving, hairdressing, providing fitness training or landscape gardening
•profits from spare time activities such as making and selling craft items
•profits from buying and selling goods, for example regular market stalls, boot sales etc.
This is not an exhaustive list and any sort of additional income could be covered. There are time limits and procedures to be complied with and we can help anyone who would like to be guided through this process.