HMRC announce the Tax Catch Up Plan
HMRC have today announced the Tax Catch Up Plan for individuals who have undeclared income from providing private and/or self employed tuition and coaching as a main or secondary income, regardless of whether they have a recognised qualification.
Individuals will have until 6 January 2012 to tell HMRC of their intention of making a disclosure with full disclosure to be made by 31 March 2012
HMRC is using legal powers to obtain information about payments made to tutors and coaches from various sources, including the academic, sport, leisure and other sectors.
After 6 January 2012, when the deadline to notify has passed, HMRC will use data from an extensive range of sources to identify those who have failed to come forward and notify their intent to make a full declaration. HMRC uses advanced IT tools such as 'web robot' software which helps identify people who have failed to pay the right tax. Those identified face substantial penalties or even criminal prosecution.
HMRC carries out criminal investigations into any customers whose circumstances meet the criteria within HMRC criminal investigation policy and when this leads to prosecution HMRC will seek the maximum publicity to discourage others from failing to pay the right tax on time. HMRC does not believe that it is fair for the compliant majority to pay for those who cheat their taxes.
10 October 2010
EDF Tax says:
HMRC had announced a while ago that they were looking at tutors and coaches and this new arrangement follows the similar deal offered to medical staff and plumbers.
It is worth noting that after the Plumbers Tax Safe Plan deadline expired HMRC announced in August 2011 the arrest of five plumbers who were suspected of tax fraud. They also said they had already begun enquiries into a further 600.
HMRC went on
“These arrests are just the start. HMRC is considering hundreds of further cases for criminal investigation in the plumbing and medical professions. Some people may have thought we were bluffing when we said we have information that we will use to prosecute tax evasion.”
HMRC also say they have lots of information about tutors and coaches. There is no reason to doubt them. The Tax Catch Up Plan is a good chance for people to resolve their tax problems. Far better that than for HMRC to come knocking.
Who to contact?
For further information contact Iain Macleod on 0115 983 5580 or email at imacleod@edftax.co.uk.