In the past 8 years, HMRC has recovered £989 million in tax through its campaigns. Each campaign has focused on specific areas or professions, for example they recovered £22 million from plumbers and £16 million from electricians.
So, who have they got their beady eye on right now? Is it you?
The four major personal tax campaigns that HMRC is currently focusing on are as follows:
- Solicitors – if you have any undeclared tax, HMRC is giving you until 9 March to come forward or face additional fines.
- Credit/Debit cards – HMRC holds records of all card transactions and is going to start checking them against tax declared. If you accept cards as payment and haven’t declared all the tax, you tell HMRC voluntarily. If you don’t, and then get caught, the penalties will be bigger.
- Second incomes – HMRC is targeting anyone with an “extra” income as well as the day job. For example, this could include consultancy, taxi driving, making/selling craft items, or buying/selling goods at market stalls or car boot sales. Again, they’re giving you chance to come forward voluntarily, or face higher penalties when they catch up with you.
- Landlords – if you rent out any residential property, at home or abroad, HMRC want to hear from you. This includes renting out a room in your own home, but only if you charge more than £4,250 each year for the room. As with all the campaigns, the penalties will be higher if you don’t come forward.
When they look into these areas, HMRC uses other records that the Government holds to highlight potential evaders. These include local councils’ records, bank details, insurance records and DVLA. For example, they used the Land Registry to look at property sales and get an extra £136 million of undeclared tax from landlords in 2014.
If you’re worried about your taxes, please get in touch with us on 0151 380 3800 or by email at [email protected].
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If you would like to arrange a free meeting with a Liverpool accountant to discuss personal tax, either at our office or at your premises, please contact us on 0151 380 3800 or by email at [email protected]. Alternatively, you can use our website contact form.
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Added by Jon Davies