Private Tutors Beware, HM Revenue & Customs Have You In Their Sights!
Are you a private tutor or coach?
If you are, and your tax affairs are in order, then you can relax. But if you have any sources of income that you are not declaring to HM Revenue & Customs (“HMRC”) then you need to be aware that HMRC will be targeting your sector over the next few months to identify potential targets for investigation. They will be using all third party databases at their disposal such as databases of qualified professionals, advertising, the internet and information received from the public to build up a database of activity in your business area.
HMRC define the field of private tutoring very widely, and will be looking at fitness coaches, lifestyle coaches and music teachers and similar in addition to tutors offering traditional academic subjects.
Previous HMRC campaigns focussed upon particular trades have offered incentives to disclose any irregularities voluntarily in advance of targeted enforcement action against individuals who fail to take advantage of the incentives. For example a recent campaign aimed at Doctors produced a large number of voluntary disclosures, but now HMRC are investigating those who failed to come forward and are believed to be prosecuting a number of the worst offenders. It therefore makes sense to grasp the nettle and seek professional advice with a view to making an early disclosure if you think there has been a problem rather than to bury your head in the sand.
HMRC have not yet announced what incentives – if any – there will be if you make a disclosure, but we would strongly advise anyone who may have undisclosed income to start thinking now about coming forward to HMRC, as a spontaneous disclosure made now is likely to receive favourable treatment from HMRC irrespective of any future announcements from HMRC. We will provide updates on any developments as soon as we hear anything.
At Mazars Tax Investigations Team we have an excellent record of obtaining the best results for clients in similar circumstances and our aim in to help you get your tax affairs in order whilst ensuring that you only pay the right amount of tax and not too much. We have supported many clients through the process of regularising their tax affairs and enjoy an excellent reputation with HMRC.
If you have any concerns about this particular HMRC campaign your tax affairs in general, or require any support, then please contact us by phone or email for a no-obligation initial conversation.