Private tutors targeted by HMRC

October 14th, 2011  |  Published in Uncategorized

Following earlier clampdowns on plumbers, doctors and dentists designed to encourage them to hand over any unpaid income tax, the latest HMRC initiative targets private tutors, which could include music and language teachers, horse riding instructors and fitness coaches. Many full time schoolteachers work as private tutors to supplement their incomes.

As with earlier schemes, if you are taking money as a tutor and not declaring it at present, HMRC said those who came clean would face a lower penalty than if it found out itself. A spokesman said the “vast majority” of those who could be classed as private tutors were “fully law-abiding citizens” who pay what they owed. But, he added, there was a “significant enough minority” for it to be concerned.

Marian Wilson, head of HMRC campaigns, said: “Our campaigns are designed to ensure tax is paid so that the money is available to spend on public services used by everyone. 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.“

HMRC will employ cutting-edge tools such as “web robot” software to search the internet and find information about specified people and companies, and their financial affairs. It will then use this information “to pursue people who choose not to use the opportunities we provide for them to put their affairs in order on the best possible terms”.

Online traders are also in HMRC’s sights. If you are a tutor, plumber, online trader, or anyone who is earning but not declaring their income, contact me to learn how to make a full disclosure before the Taxman sends you an ominous brown envelope…

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