Apr 2014
29
HMRC's second income campaign
HMRC have started a new campaign targeting employees with second incomes and who have not paid tax on this second income source.
This drive is the latest in a series of targeted tax clampdowns on certain professions or areas, like consultancy work, with warnings that HMRC will be using all resources available to trace offenders.
Examples given within the Campaign Scope are as follows:
- Receiving payment for organising parties/events or providing entertainment.
- Making and/or selling Craft Items
- Taxi Driving; Hairdressing; Fitness Training; Landscape Gardening; Regular Car Boot Sales, Market Stalls, etc.
- Consultancy Fees or Public Speaking or Training Fees
As in previous campaigns, HMRC have adopted a “carrot and stick” approach where they offer more lenient terms if any tax due is paid voluntarily. HMRC stated they will take account of the level of help provided and the accuracy of details given when offering reduced penalties but also warn those choosing not to declare their second income - “Where additional taxes are due HMRC will usually charge higher penalties…up to 100% of the unpaid liabilities or up to 200% for offshore related income.”
