If you are an employee with undeclared and untaxed income, this is a good time to own up and get your affairs in order.
The HMRC Second Incomes Campaign is currently running (as at 10 September 2014) to help those with additional incomes make voluntary disclosures and pay what they owe.
If you don’t make a voluntary disclosure and the HMRC finds out later that you owe tax, you could get higher penalties or face criminal prosecutions. Be aware that in the UK, tax evasion is a criminal offence.
So, what counts as a Second Income? The following are listed on the official [gov.uk] website:
- consultancy fees, eg for providing advice, guidance or training
- organising parties and events
- providing services like taxi driving, hair dressing or personal fitness training
- making and selling craft items
- buying and selling goods eg on EBAY, market stalls or car boot sales
To get the ball rolling, a voluntary disclosure needs to be made by informing HMRC of any additional income not already taxed through PAYE or self assessment.
If the above affects you but you find dealing with the HMRC a scary prospect, please get in touch via the contact page and we will help you sort things out.