HMRC have introduced another campaign that targets individuals who supplement there main source of income (usually employment) with an additional income from working for themselves that has not previously been declared and taxed .
This would be classed as a second income for the purposes of this campaign and would include income from activities such as:
- Consultancy fees –training, property plans etc.
- Organising parties and events
- Providing services like taxi driving, hairdressing or fitness training
- Making and selling craft items
- Buying and selling goods eg market stalls, car boot sales, eBay trading etc
The purpose of the campaign is to provide an incentive for individuals to make a voluntary disclosure of a second income in order to obtain best possible terms from HMRC.
If HMRC discover by their own means an undisclosed second income then penalties incurred by the individual may be higher and the individual could face criminal prosecution.
An individual will have 4 months (from the date of HMRC receiving notification) to calculate and pay the tax owed but if more time is needed to pay then a call to the HMRC help line (0300 123 0945) should be made.
HMRC can be notified by completing D01 - Second incomes campaign notification form and follow instructions on submission of form (either online or post).
Once acknowledgement has been received by HMRC then complete D02 Second incomes campaign disclosure form and follow instructions on submission of form (either online or post).
Full details of campaign including a helpful video on what is deemed a second income can be found at HMRC second incomes campaign.
Please contact us if you require any assistance or advice concerning the second incomes campaign.
