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December 2011

The Deadline is Approaching for Teachers and Tutors

Private tutors and coaches have until 6 January to inform HM Revenue & Customs (HMRC) about any tax that they owe.

They were given the opportunity to declare as part of a special tax plan – the Tax Catch Up Plan, in October this year. Registering by 6 January ensures that tutors and coaches don’t lose out on the best terms to disclose and pay what is owed.

The Tax Catch Up Plan is for people who provide tuition or coaching, regardless of whether they hold a registered qualification. It is aimed at people who profit from tuition and coaching as a main or secondary income, on which the correct tax has not been paid.

This opportunity is open to people teaching traditional academic subjects, fitness and dance, musical instruments, art, life coaching, personal training and other instruction.

From 6 January 2012, information will be pulled from various 3rd party sources, and HMRC will investigate those who have chosen not to come forward.

Marian Wilson, Head of HMRC Campaigns, said:

“Tutors and coaches who have notified us of their intention to disclose unpaid tax will have until 31 March to tell us what they owe and make arrangements to pay.

“From January we will use the information at our disposal to investigate tutors and coaches who have not declared their full income. I therefore strongly urge anyone in this group who thinks they may have outstanding income tax liabilities to get in touch with HMRC and get their tax affairs in order.

“This is the first step for those with undisclosed income or gains to avoid a full tax investigation and much higher penalties. Contact us before we contact you.”

The Tax Catch Up Plan has two stages:

* By 6 January 2012, tutors/coaches/instructors must register with HMRC to “notify” that they plan to make a voluntary tax disclosure.

* By 31 March 2012, those who have registered to notify must tell HMRC what they owe and pay the tax, interest and penalties due.

For more information, or would like somebody to act on your behalf, please contact us today.