HM Revenue & Customs’ Second Incomes Campaign, which was launched in April 2014, is aimed at UK-resident employees who earn extra income from working for themselves and who have not already paid tax on the income, e.g. via self assessment or PAYE. Sources of income could include:
- consultancy work, e.g. for 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. on market stalls or at car boot sales
- musicians and singers
The campaign is designed to encourage people to make a voluntary disclosure, so that they can benefit from the best possible terms from HMRC.
Where there is a failure to make a disclosure, and HMRC identifies unpaid tax, the taxpayer could face higher penalties or even criminal prosecution.
People wishing to make a voluntary disclosure must notify HMRC of their intention to do so and will then have four months to disclose their tax affairs from the date they receive acknowledgement of their notification.
If you think that you might be affected by the Second Incomes Campaign, seeking expert advice could be a wise investment.
For more information on how our East London and Essex Second Incomes Campaign services can help you, please contact us.