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If you trade on eBay and don’t pay tax on your profits you need to act now
As anticipated HMRC has launched a campaign to target people trading on the internet who haven’t paid all the tax they owe. This latest campaign is known as the e-Markets Disclosure Facility.
If you use online marketplaces or online auctions, like eBay, to buy or sell goods as a trade or business you should have registered with HMRC and pay tax on your profits. If you haven’t paid all the taxes you owe you have until 14 June to notify HMRC that you plan to disclose unpaid taxes. You then have until 14 September to tell HMRC about tax due and make arrangements to pay the tax, interest and penalties owed.
Benefits to you of coming forward
If you have unpaid taxes from trading on online marketplaces or online auctions and you use this opportunity to disclose your errors your penalty is likely to be no more than 10% of the tax you owe. If you don’t use this opportunity to come clean HMRC will use its additional powers, people and software interrogation tools to investigate potential tax underpayments in this sector. If you are caught at that stage your penalties could be as much as 100% of the tax underpaid or you could even face a criminal investigation.
What next?
If you want to find out more about this or other disclosure opportunities speak to us or go to http://www.hmrc.gov.uk/campaigns/
How we can help?
When and how you disclose underpaid tax and under which of the available campaigns can significantly impact the penalties you end up paying. To ensure you get the best possible deal for you please give Nicholas Smail a call on 01452 634800 or email him at nicholas.smail@hazlewoods.co.uk.
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