As part of their rolling programme of campaigns to provide taxpayers with opportunities to voluntarily put their tax affairs in order, HMRC are now targeting the group they call e-traders.
The e-Markets Disclosure Facility is aimed at people who are trading online through an online marketplace or online auction (e.g. ebay), to sell goods or services as a business but aren’t paying the right amount of tax. The e-MDF offers a simplified method of making a disclosure to HMRC along with a guaranteed low penalty. Anyone wishing to use the e-Markets Disclosure Facility has to do register their intention with HMRC by 14 June 2012.
After the end of the deadline HMRC say that they’re going to use vast amounts of intelligence which they have gathered in order to investigate those who do not come forward. Anyone found to have underdeclared their tax as part of those investigations could face penalties of up to 200% and possibly face criminal prosecution.
What does this mean for me?
If you sell goods or services online then you need to consider whether this amounts to a taxable activity. If it does you need to calculate the taxable profits, declare these to HMRC, and pay the tax over. Lynam Tax can assist with this. The e-Markets Disclosure Facility provides a simplified method of making such a disclosure. If you do wish to disclose tax fraud and miss this opportunity then favourable terms can still be obtained using the Contractual Disclosure Facility. Lynam Tax Enquiry Experts have enormous experience of dealing with such tax disclosures and can advise further on these issues.
*For a free, confidential chat about your tax affairs, don’t delay, call Paul Lynam now on 0845 643 9997.