Umbrella contractors need to be aware that HMRC plans to target more sectors in a bid to recoup unpaid taxes.
Last month, the Revenue said it would be targeting businesses that have not yet registered for VAT, despite trading above the threshold of £73,000. This month’s announcement says it will be turning its attentions to people who provide private tuition and those trading in e-marketplaces.
HMRC has not given a fixed date for the start of the latest campaigns but it is believed they will be rolled out sometime during this financial year.
Professionals providing private tuition as either a main or secondary income are set to come under the spotlight. This will include those teaching academic subjects as well as personal trainers and gym instructors.
HMRC also plans to target people whose business involves buying and selling goods through e-marketplaces but who fail to pay tax on their profits. People who just sell a couple of goods through sites such as e-bay will not be affected, the department has confirmed. It is interested in business rather than personal trading.
The Revenue recently offered a tax amnesty to plumbers and associated trades people and in the future it will be inviting people working in other trades to make a voluntary declaration of their unpaid taxes.
Mike Wells, the director of risk and intelligence at the Revenue, said the department wants to hear the views of private sector businesses and freelancers so it can better design future campaigns. He went on to explain that being open about its intentions should reduce the tax gap and help people settle their tax liabilities. The information the Revenue gains will be used to chase people who do not take advantage of the opportunities it provides.
Wells also pointed out that it will be much more costly for tax evaders if the Revenue has to come and seek them out and he urged people to take advantage of disclosure opportunities.
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Image: A tight squeeze Project by Keith Williamson
