Posted by Tax Innovations on 12 Oct 2011

HMRC Targets Private Tutors and Coaches

HM Revenue and Customs (HMRC) has declared its intention to pursue private tutors and coaches for potential unpaid tax liabilities.

Head of HMRC Campaigns Marian Wildon said:

“Our campaigns are designed to ensure tax is paid so that the 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. “

Tax Catch up Plan

The campaign has been given the working name of the ‘Tax Catch up Plan’ and targets any provider of private lessons regardless of industry, nature of the subject or indeed whether the tutor or coach is qualified.

Those affected by the campaign will have until March 31st 2012 to notify HMRC of and pay any outstanding tax for the years up until April 5th 2010, including interest and penalties. This will first involve registering with HMRC an intent to make a voluntary tax disclosure and this can be done between October 10th 2011 and January 6th 2012.

To encourage voluntary disclosure HMRC has said that those who voluntarily come forward will receive far better terms than those who do not. Put simply, those that come forward are unlikely to face penalty charges of any more than 20% of the unpaid tax. All others face potential penalties of up to 100% of tax owed and criminal prosecution.

Contact Tax Innovations if you’re a¬†Private Tutor and Coach

If you think you may be affected by the ‘Tax Catch up Plan’ and would like any advice on the issue, please contact us¬†for an initial consultation.