HMRC target private tutors

HMRC has stared to target anyone who receives income from private tutoring and does not declare and pay tax on the income.

Those providing tuition, instruction or coaching, which could include tuition of traditional academic subjects, fitness, dance instruction, musical instrument tuition, art, or services provided by life coaches and others, have until 6 January 2012 to notify HMRC of their intention to make a disclosure of unreported income and have until 31 March 2012 to make that disclosure of outstanding tax for the years up to 5 April 2010 and pay what they owe. 

Those who come forward by the deadline are likely to receive the best possible terms for paying the tax owed. If they have to pay a penalty, HMRC says “it is unlikely to be more than 20 per cent of the unpaid tax”. 

Those who wait for HMRC to come to them will find that they have to pay much higher penalties, or even face criminal prosecution. After 31 March 2012, using information pulled together from different sources, HMRC will investigate those who have chosen not to come forward.

For more on this from HMRC’s website, click here