HMRC have announced the Tax Catch Up Plan for tutors and coaches to enable any unreported income to be declared and the related tax paid to target rule breakers and home in on tax evaders. If you are paid for providing coaching, instruction or tuition and tax is not deducted and you don't include that income on a tax return or you don’t have an adjustment already in your tax code, then you need to use this plan to tell HMRC about that income now. By making a disclosure under the Tax Catch Up Plan you will benefit from the best possible terms. If you owe tax in respect of anything else such as capital gains or rental income you can use the Tax Catch Up Plan to tell HMRC about that too and make a full disclosure.

You will need to tell HMRC by 6 January 2012 that you intend to make a disclosure and follow this up with a full disclosure and payment of the tax liability by 31 March 2012.

HMRC is using legal powers to obtain information about payments made to tutors and coaches from various sources, including the academic, sport, leisure and other sectors. After 6 January 2012, when the deadline to notify has passed, HMRC will use data from an extensive range of sources to identify those who have failed to come forward and notify their intent to make a full declaration. HMRC uses advanced IT tools such as 'web robot' software which helps identify people who have failed to pay the right tax. Those identified face substantial penalties or even criminal prosecution.

If you think that you have not paid the correct amount of tax or would like advice please contact us.