HMRC often run campaigns encouraging voluntary disclosure by tax payers of undeclared income. By bringing their tax affairs up to date via a campaign the tax payer may avoid heavier penalties and possible prosecution when HMRC do catch up with them later.
HMRC are currently running a Second Incomes Campaign which is aimed at people who are both employed and self-employed but whom have not declared their self-employed income. There are two stages to making a disclosure, first notifying HMRC and second making the disclosure and paying the tax plus interest and penalties.
Once HMRC have acknowledged the notification from the tax payer that they wish to declare self-employed income under this campaign there is a period of four months during which the tax payer must make full disclosure and payment.
This opportunity to disclose undeclared self-employed income currently has no deadline by which you must notify HMRC.
The number of years for which disclosure is needed is dependent on the reason why the tax was unpaid. If reasonable care has been taken then the disclosure is four years, for those who have been careless then it is six years and for deliberate behaviour disclosure maybe for up to twenty years.
If you require advice in relation to taking advantage of this HMRC campaign then please do not hesitate to contact J Clarke & Co on 01270 260095 or via email firstname.lastname@example.org