HMRC Launch the Tax Catch Up Plan
HMRC have launched a campaign to target private tutors and coaches who have undeclared tax liabilities (see our August news item).
The Tax Catch Up Plan (TCUP) is aimed at individuals who provide private lessons, or who profit from tuition, instruction or coaching, as a main or secondary income where the correct tax has not been paid.
Under the TCUP, relevant individuals have until 6th January 2012 to notify HMRC that they plan to make a voluntary tax disclosure. They then have until 31 March 2012 to disclose what they owe and pay the tax, interest and penalties due. HMRC have confirmed that those who come forward by the deadline are likely to receive the best possible terms for paying the tax owed. If they have to pay a penalty, it is unlikely to be more than 20%.
Those who wait for HMRC to come to them will find that they have to pay much higher penalties (as much as 100% and may even face criminal prosecution). After 31 March 2012, HMRC will investigate those who have chosen not to come forward.
Marian Wilson, Head of HMRC Campaigns, said:
‘We are making it as easy as possible for people offering tuition and coaching to use this unique opportunity to put their tax affairs in order by making a full disclosure, and benefit from the best possible terms.
We are using various intelligence sources to identify and then target those who do not take advantage of this opportunity to declare their full income. The message is clear: contact us before we contact you.’
Prime specialise in this area, so if you would like expert advice or somebody to act on your behalf, please call 02476 518 555 or email [email protected]