People selling directly to customers and who haven’t paid all the tax they owe have been offered the opportunity to come forward and pay up under the latest HM Revenue & Customs (HMRC) simplified Tax Disclosure Campaign.
Direct selling involves selling directly to customers without the need for a shop. Selling can involve demonstrating a product in a customer’s home, sometimes at a party, while some agents sell door to door, often using catalogues. Direct sellers take commission on the sales they make. Under the time-limited opportunity, direct sellers – often called “agents”; “consultants”; “representatives”; or “distributors”; – can make a simplified disclosure to the taxman, pay the tax they owe and benefit from lower than normal penalties: with most being charged a penalty of no more than 10% of the tax they owe.
To take part in the campaign, direct sellers need to tell HMRC about the tax due and make arrangements to pay any tax, interest and penalties owed by 28 February 2013. HMRC warn that: “Once this disclosure opportunity closes on 28 February 2013, taxpayers who have not come forward but are found to have unpaid tax liabilities will face higher penalties, rising to 100% of the tax unpaid or, potentially, criminal investigation”.
Tax Disclosure Campaigns have raised nearly £510 million so far, and a further £120 million has been collected from follow-up tax investigations. Campaigns launched so far have targeted offshore investments, medical professionals, plumbers, VAT defaulters, coaches and tutors, electricians and online traders.
What does this mean for me?
If you are a direct seller, and your tax affairs are not in order, then this Campaign could offer the ideal opportunity to bring matters up-to-date in a straightforward manner, and with relatively very low penalties. Because of the simplified nature of a Campaign disclosure you may be able to handle this yourself or more likely with the help of your usual accountant. If your affairs are more complicated you probably need the assistance of a tax investigation specialist such as Lynam Tax Experts.
If you if your tax affairs are not in order, and you would like peace of mind, and to avoid potential prosecution and high penalties, then you can also make a voluntary disclosure. However, you cannot use the Campaign facility. In order to get the maximum benefit from your voluntary disclosure you should seek the assistance of a Tax Disclosure Expert such as Lynam Tax.
How can Lynam Tax Disclosure Experts help me?
Lynam tax experts have nearly 70 years’ experience of assisting people with tax disclosures: securing them the optimum outcome, including low penalties.
Don’t delay, for a free and confidential initial discussion telephone Paul Lynam on: 0845 643 9997