HMRC’s tax disclosure opportunity, the Tax Catch Up Plan (TCup) covered income from “coaching, tuition and/or anything else…” and closed on 6 January 2012.

If potential taxpayers have missed any of HMRC's earlier disclosure plans they have until 6 January 2012 to register with HMRC and obtain a reference number and have a deadline of 31 March 2012 to disclose and pay any tax due.

HMRC is targeting tutors and coaches from various sources, including the academic, sport, leisure and music industries.

Penalties under the TCup are the same as under the Plumbers' Tax Safe Plan which ended in August 2011, which also included a general disclosure facility.

Under the tax penalty system that applies for errors from accounting periods in or after 2008/09, a voluntary disclosure of an error caused by careless, but not deliberate behaviour will not attract a penalty, however, the penalty for disclosure of an error caused by deliberate behaviour will attract a minimum penalty of 20% to 30%.

Penalties under the old system (returns for 2007/08 and earlier) are only due when negligence is proved.

Penalties under the TCup are as follows:


Circumstances

Penalty if you come forward in this TCup

Penalty if HMRC find out you have not paid enough tax

If you have not paid enough tax despite taking reasonable care with your affairs, you will not pay any penalties at all.

You sent HMRC a return showing less tax payable than the correct amount because you had been careless.

10% of the tax due

No penalty at all for 2008/9 & 2009/10

Up to 100% of the tax due

Between 15% and 30% of the tax due

You started trading, haven’t told HMRC about it or sent HMRC a tax return, but you weren’t deliberately trying to keep the information from them.

10% of the tax due.

No penalty at all for 2009/10.

Up to 100% of the tax due

Between 15% and 30% of the tax due

You deliberately failed to tell HMRC you had started trading.

20% of the tax due.

For years up to 2008/9, up to 100% of the tax due.

Between 35% and 70% of the tax due

You deliberately sent HMRC a return showing less tax payable than the correct amount in order to understate your tax bill.

For years up to 2007/8, up to 100% of the tax due.

Between 35% and 70% of the tax due

You may have to pay penalties of up to 100% of the tax due if you tried to conceal the extent of the undeclared tax.

Interest is also due on any tax or NICs due.

Links: HMRC TCup

 

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