HMRC warned today that private tutors and coaches have less than a month left to make a disclosure under the so-called Tax Catch Up Plan.
This is a simplified disclosure programme which will be followed up by full investigations of those who do not come forward. Anyone wanting to take part has to register by 6 January 2012. The Tax Catch Up Plan is aimed at anyone providing tuition or coaching, regardless of whether they have a registered qualification, or whether it is a main or secondary income; and on which the full tax has not been paid. The scheme is available to people teaching traditional academic subjects, fitness and dance, musical instruments, art, life coaching, personal training and other instruction.
The taxman is warning that: “Once this disclosure window closes …those who have not come forward but are found to have unpaid tax liabilities will face investigation, maximum potential penalties of 100 per cent of the tax evaded, or possible criminal prosecution”.
This is not a tax amnesty. The full amount of tax, interest and penalties still has to be paid. But the process is quicker and simpler than normal. It is mainly suitable for people with straightforward affairs and only one source of undisclosed income. More complex disclosures may benefit from being dealt with outside of this scheme.
How can Lynam Tax Investigation Experts help me?
Lynam Tax partners have a vast amount of practical experience in managing tax investigations and tax enquiries. We can advise you on the best course of action and if appropriate, help you manage any necessary disclosures, in order to obtain the optimum outcome for you, your business and your family.
*For a free, private, no obligation consultation, call Paul or Gemma Lynam today on 0845 643 9997