HMRC have published details of their latest campaign to
encourage taxpayers to declare and pay unpaid tax on second incomes.
HMRC will expect settlement of any taxes due four months from the date
of declaration of untaxed income sources to HMRC.
The types of income highlighted by HMRC include:
·
consultancy fees, for example,
providing training
·
organising parties and events
·
providing services like taxi driving,
hairdressing or fitness training
·
making and selling craft items
·
buying and selling goods, e.g. at
market stalls or car boot sales
If you have undeclared income, making use of this disclosure opportunity
should reduce any penalties HMRC may charge you. If you don’t make a voluntary
declaration, and are discovered by HMRC, then the penalties you will be charged
will be much higher.
· If you make a voluntary disclosure
penalty rates are 0%, 10% or 20% depending on the circumstances.
· If you don’t make a voluntary
disclosure these rates can rise to 100% of the tax underpaid.
· If the non-disclosure involves
offshore liabilities the penalties can increase to 200%.
