HMRCs latest campaign is a push to ensure tax compliance by those who sell through online platforms.
The One to Many campaign
Called the One to Many campaign, a letter is sent to people who receive income from online marketplaces , and haven’t reported their incomes.
HMRC now receives data directly from platforms about their sellers’ transactions. It actively looks for evidence of undisclosed commercial activity. If it’s on social media, it can find it.
Add to that the extensive information-gathering powers that mean it can access data from other government departments, online sales platforms, the Land Registry and DVLA to name a few.
The One to Many letter
– informs sellers ( like online content creators, landlords, sellers importing cheap goods to resell, dog walkers and tutors) that HMRC holds information about their income,
– prompts them to come forward to make a disclosure,
– aims to bring them into compliance.
For this campaign, the period under review is the time up to the tax year ending 5 April 2023. However, be aware that all online sales can be traced and income should be declared to HMRC.
More information
HMRC advise that if you receive a letter from them, you show it to your tax advisor.
If you do not have an advisor, they suggest you get professional advice.
Please contact us in either case to review your next steps.
**
HMRC TAX INVESTIGATION – FEE PROTECTION SERVICE
Our insurance backed service protects you from accountancy and tax investigation fees associated with an HMRC enquiry or dispute.
Get in touch for a quote > Fee Protection Team
**