Employees who have undeclared income from self-employment are being urged to notify HM Revenue & Customs (HMRC).
HMRC published guidance on its Second Incomes Campaign on 9 April aimed at employees who have additional income from working for themselves, for example through:
- consultancy work, e.g. for providing training
- organising parties and events
- providing services like taxi driving, hairdressing or fitness training
- making and selling craft items
- buying and selling goods, e.g. on market stalls or at car boot sales
and where they have not already paid tax on the income, e.g. via self assessment.
The campaign is designed to encourage people to make a voluntary disclosure, so they can benefit from the best possible terms from HMRC.
Where there is a failure to make a disclosure, and HMRC identifies unpaid tax, the taxpayer could face higher penalties or even criminal prosecution.
People wishing to make a voluntary disclosure must notify HMRC of their intention to do so and will then have four months to disclose their tax affairs from the date they receive acknowledgement of their notification.
Link: Second Incomes Campaign: your guide to making a disclosure