Get your tax up to date during Second Incomes amnesty
Following the launch of HMRC’s latest tax amnesty, a Leicester-based accountant is encouraging those with a second, undeclared income to make contact with HMRC now in order to minimise penalties later on.
With tax avoidance currently a hot topic, Newby Castleman is advising individuals with a second income to get their tax affairs up to date during HMRC’s Second Incomes Campaign, which is giving people an opportunity to declare any unpaid tax with reduced penalties.
Ian Fawcett, Partner at Newby Castleman, comments: “A second income could be fees from consultancy work, payment for organising events or income from activities such as taxi driving, hairdressing, fitness training or gardening.
Profits from spare time activities, including making and selling craft items, and from buying and selling goods through a market stall or car boot sales, could also count as a second income, which some people may not even realise.
Many individuals may be unaware that these activities require them to pay tax, but if they are providing services or trading in order to make a profit, then it needs to be declared as a second income.
HMRC are providing the tools and support for those stepping forward to declare a second income, with individuals then being given four months to calculate and pay what they owe – it’s an easy opportunity to be compliant and self-correct what is owed.
During the amnesty, HMRC will take a more lenient attitude to those who come forward to get their tax affairs up to date, so now is the time to declare any earnings that may not have previously been taken into consideration.
Following the campaign, HMRC will begin to clamp down on those who are not declaring all of their earnings, which could mean hefty penalties for those who are caught out.
There could be many reasons why people have not rectified their situation sooner, but our advice is to make a voluntary disclosure now in order to take advantage of the best possible terms currently on offer by HMRC.”
As part of HMRC’s policy to reduce tax evasion and avoidance, a number of campaigns have seen it recoup over £580 million in tax since 2007, all as a result of individuals voluntarily coming forward to pay what is owed.
For expert advice on declaring a second income or any other tax queries, visit newbycastleman.co.uk.