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Local Tutors and Coaches Told to Play Ball with Tax
Decemebr 2011
We are advising local tutors, sports and leisure coaches across the East Midlands who have not fully disclosed tax arrears to do so by early January next year or face substantial penalties.
HM Revenue & Customs (HMRC) has launched a Tax Catch Up Plan (TCUP), a unique time-limited opportunity for anyone paid for providing coaching, instruction or tuition in the academic, sport and leisure sectors amongst others, to come forward and inform them of any unreported income for 2009/10 and earlier years.
Anyone wishing to take advantage of this disclosure opportunity must notify HMRC by Friday 6th January 2012 and then make a full disclosure and payment, or agree a payment schedule, by Saturday 31st March 2012.
By coming forward HMRC have said the terms of payment* will be more favourable than those offered to people who wait to be contacted. After 6th January 2012, using information pulled together from different sources including web robots, HMRC will investigate those who have failed to come forward and substantial penalties or even criminal prosecution could follow.
Ian Fawcett, Tax Partner at our Leicester head office comments, “This latest crackdown by HM Revenue & Customs is similar to those limited-time opportunities offered earlier this year to doctors, plumbers and other individuals and businesses. The idea is to make sure that those who have not declared extra income or gains do so and therefore avoid a hefty fine in the future if they are found to be evading tax.”
“If you are paid for providing coaching, instruction or tuition and tax is not deducted and you don’t include that income on a tax return, or have an adjustment already in your tax code, then you need to use this plan to tell HMRC about that income now.”
For more information on the Tax Catch Up Plan or those seeking tax advice contact Ian Fawcett on 0116 254 9262.
*Terms of Payment offered by HMRC to those who disclose tax arrears:
Where the tutor or coach made a Return but, through carelessness, failed to declare his full income: Tax (with interest) must be paid for 2006/07 onwards. There will be a 10% penalty for 2006/07 and 2007/08, but no penalty for 2008/09 or 2009/10.
Where the individual failed to tell HMRC that he was working as a tutor or coach, but did not deliberately try to keep the information from them: Tax (with interest) must be paid for 2006/07 onwards, with a 10% penalty for all four years 2006/07 to 2009/10
Where the tutor or coach deliberately withheld information from HMRC, or deliberately submitted an incorrect Return: Tax, interest and a 20% penalty will be payable for years back to 1991/92