HMRC’s Tax Catch up Plan (TCP) is aimed at private tutors, fitness instructors and sports coaches who gain a secondary income through tuition, whether or not they have a teaching qualification, and have not notified HMRC or paid the correct tax on their additional income.
The Tax Catch up Plan is open to tutors, instructors and coaches that provide private lessons for music, sports, academic subjects, creative art and even life coaching services.
HM Revenue and Customs have given those who wish to take part in the tax amnesty until the 31 March 2012 to come forward and pay HMRC any outstanding tax they owe from their private tutoring up to 5 April 2010.
HMRC have introduced the TCP initiative to allow those willing to take part to put their tax affairs in legal order and ‘keep them on the right track for the future’.
Head of HMRC campaigns, Marian Wilson, said:
“Our campaigns are designed to ensure tax is paid so that they money is available to spend on public services used by everyone. We are making it as easy as possible for people offering tuition and coaching to use this unique opportunity to put their tax affairs in order by making a full disclosure, and benefit from the best possible terms.
“We are using various intelligence sources to identify and then target those who do not take advantage of this opportunity to declare their full income. The message is clear: contact us before we contact you.”
Private tutors, fitness instructors, sports and life coaches who come forward and disclose their unpaid tax to the Revenue will more than likely only face tax penalty charges of no more than 20 percent of the unpaid tax.
If you decide not to come forward to HMRC you may be facing a tax penalty of up to one hundred percent of the tax evaded plus the taxes owed, or worse, face criminal prosecution.
HMRC have said that after the deadline of 31 March 2012 that they will be pursuing ‘those who have chosen not to come forward.’
HMRC’s Tax Catch up Plan will be initiated in two key stages:
If you wish to disclosure your additional income from private tutoring to HMRC and take part in the TCP you must ‘notify’ the Revenue with your intent of making a voluntary tax disclosure.
If you have registered for the TCP you then have until the 31 March 2011 to tell HMRC what tax you owe and pay the outstanding tax, additional interest and tax penalties due.
If you wish to register for the Tax Catch up Plan you can do so via HM Revenue and Custom’s website or by giving them a call.
Previous tax campaigns by HMRC have targeted medical professionals, offshore assets, the plumbing industry and businesses who had not registered for VAT.
Kevin Kinsella, of KinsellaTax, said:
“HMRC’s previous disclosure opportunities failed to be deemed a success. Only £10m was brought in by the doctor’s tax amnesty and the Revenue’s recent clamping down on plumbers failed to raise half a million pounds.
“I am doubtful as to how successful a tax amnesty targeted at private tutors will be in helping to reduce the tax gap in the UK.
“Instead of setting up schemes that produce small results, HMRC should be using more staff to reduce the £35bn outstanding tax bill that is owed and needs to be collected.”
If you have been teaching academic subjects, sports and music outside of classroom hours and haven’t declared your additional income, you need to declare it to HMRC.
KinsellaTax will make your voluntary disclosure for you.
KinsellaTax staff consists of ex-HM Inspector of Taxes and ex-HM Custom and Excise Officers, fully experienced inHMRC investigations.