The Tax Catch up Plan (TCP) is for people with any undeclared income, from tuition and coaching as a main or secondary income, on which the correct tax has not been issued. This is a great opportunity for a large number of South London residents who supply tuition in traditional subjects; instruction or coaching, fitness and dance instruction, musical instrument tuition, art, services provided by life coaches and others.
Under the plan, tutors and coaches have until 31 March 2012 to come forward and tell HMRC about their outstanding tax for the years up to 5 April 2010, and pay what they owe. The plan makes it easy for customers to put their tax affairs in order and keep them on the right track in the future.
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, it is unlikely to be more than 20 per cent of the unpaid tax. Conversely, 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, using information pulled together from different sources, HMRC will investigate those who have chosen not to come forward.
The Head of HMRC’s campaign explains it as follows; “We are using various intelligence sources to identify and then target those who do not take advantage of this opportunity to declare their full income. The message is clear: contact us before we contact you.”
The Tax Catch up Plan has two stages:
- From 10 October 2011 to 6 January 2012, tutors/coaches/instructors must register with HMRC to “notify” them that they plan to make a voluntary tax disclosure.
- By 31 March 2012 those who have registered to notify must tell HMRC what they owe and pay the tax, interest and penalties due.
Still confused about all these changes in the tax system? Taxfile’s tax accountants in South London are here to help for any doubts you might have. Visit their website or call them on 020 8761 8000 and find all the answers to your questions, and hands-on help if you need it.