HMRC’s second incomes campaign is targeted at employees who have additional income from working for themselves.
This latest campaign is an opportunity for taxpayers to disclose any additional tax due on such additional incomes. There is no fixed deadline and the campaign will be open for some time, unlike similar previous HMRC actions of this kind. There is also no incentive in the form of a reduced penalty for disclosure. However, voluntary disclosure is always treated more leniently compared with the position where it is HMRC that discovers a taxpayers error. Once the campaign closes, HMRC will use any information in its possession to come down hard on those it believes have something to disclose but have failed to do so.
HMRC is targeting a wide range of spare-time activities. You might be trading by making and selling craft items, or you could be selling goods from a market stall or at car boot sales. Personal services on which HMRC are focusing include taxi driving, hairdressing or fitness training. Maybe you receive fees for consultancy, or payment received for organising parties and events. Of course the tax liability might be much lower than expected once allowable expenses are deducted. Anyone wishing to take advantage of the campaign must initially notify HMRC of their intention, and they then have four months to calculate and pay what is owed. Any other undeclared income, such as investment income or chargeable gains, must be disclosed along with the second income.
We will, of course, be happy to help.