HMRC tutor crackdown 'could lead many to seek legal advice'

The government has announced the launch of a new campaign to crack down on private tutors and coaches with undeclared tax liabilities, which could see a rise in the number of people needing to seek legal advice.
 
HM Revenue and Customs (HMRC) has announced its Tax Catch Up Plan, which will target those who profit from tuition or coaching and have not declared this source of income.
 
Those who approach the tax authority by March 31st 2012 to tell it about tax owed until the end of the 2010 tax year will be likely to receive the best possible terms for the tax owed and are unlikely to have to pay more than 20 per cent of the sum owed as a penalty on top of repayment.
 
Last month, the Chartered Institute of Taxation warned that a HMRC crackdown on business record keeping by small firms and sole traders left these organisations' obligations unclear, which could lead to a rise in the number seeking legal advice.

Published by Tessa Jones