Do you trade on E-bay, Amazon, GumTree or similar or know someone who does?
Did you know that the tax man has been collecting information from E-bay to identify traders who are not declaring their income?
HMRC have gathered names, ID’s and transactional information and are cross referencing this to self assessment records to identify individuals who should be registered as self employed.
Penalties are greater where HMRC discover the income before you declare it to them, so if you are already a client of Defacto and have been trading in this way but have not yet told us about it let us know as soon as possible – and remember that even if you are not making a profit the income should be declared and the losses recorded.
If you know someone who has been trading through one of these sites and may not have registered for self assessment then please pass on our details and let them know that we can help them to register and prepare their return.
Showing posts with label penalties. Show all posts
Showing posts with label penalties. Show all posts
Monday, 4 August 2014
Monday, 28 April 2014
Second Incomes
The Taxman is reaching out to employees with second incomes; which could be anything from selling home-made items, to working as a self-employed consultant. All of the income and expenses from that second source of income should be declared to HMRC, and the correct tax must be paid where a profit has been made.
The Second Incomes Campaign provides a means to declare any "forgotten" second income with minimal fuss and penalties. All the tax due must be paid alongside any interest, this will be calculated from the date the tax was originally due to be paid.
To use the Second Incomes Campaign you must first notify HMRC either by completing an online form, or by calling: 0300 123 0945. HMRC will then respond with a disclosure reference number. You then have four months in which to make a full disclosure of the second source of income (quoting the reference number) and pay all the tax, interest and penalties due. We can help you calculate the amounts to be paid, and claim any losses.
The Second Incomes Campaign provides a means to declare any "forgotten" second income with minimal fuss and penalties. All the tax due must be paid alongside any interest, this will be calculated from the date the tax was originally due to be paid.
To use the Second Incomes Campaign you must first notify HMRC either by completing an online form, or by calling: 0300 123 0945. HMRC will then respond with a disclosure reference number. You then have four months in which to make a full disclosure of the second source of income (quoting the reference number) and pay all the tax, interest and penalties due. We can help you calculate the amounts to be paid, and claim any losses.
Thursday, 6 March 2014
Let Property Campaign
The taxman has launched another 'confess your tax sins' campaign aimed at individuals who have failed to declare rental income they have received from residential properties. This let property campaign (LPC) can't be used by companies that let property or by landlords who let commercial rather than residential properties.
Like other tax disclosure campaigns the taxman promises that you will pay a lower amount of penalties if you disclose under the LPC, but the tax due and interest on late paid tax will have to be paid in full.
If you want to use the LPC to declare income and gains from your let properties, you need to complete a notification form on the HMRC website, or phone the property campaign helpline on 03000 514 479. We can help you with this.
There is no set deadline for asking to use the LPC, but the Taxman is running a taskforce in parallel to the LPC which is targeting tax evasion by residential landlords. So it's a case of "confess before we catch you."
Once you have notified HMRC that you want to use the LPC, you will be given a reference number and be told to make a full disclosure of the previously un-declared income and gains within three months. You will also need to pay all the tax due within the same three month period. If you can't pay all the tax in that time period you must ask HMRC for a "time to pay" arrangement before the deadline arrives. We can help you with this as well.
Like other tax disclosure campaigns the taxman promises that you will pay a lower amount of penalties if you disclose under the LPC, but the tax due and interest on late paid tax will have to be paid in full.
If you want to use the LPC to declare income and gains from your let properties, you need to complete a notification form on the HMRC website, or phone the property campaign helpline on 03000 514 479. We can help you with this.
There is no set deadline for asking to use the LPC, but the Taxman is running a taskforce in parallel to the LPC which is targeting tax evasion by residential landlords. So it's a case of "confess before we catch you."
Once you have notified HMRC that you want to use the LPC, you will be given a reference number and be told to make a full disclosure of the previously un-declared income and gains within three months. You will also need to pay all the tax due within the same three month period. If you can't pay all the tax in that time period you must ask HMRC for a "time to pay" arrangement before the deadline arrives. We can help you with this as well.
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