In April 2014 HMRC published details of their Second Income Campaign. This gives taxpayers the opportunity to bring their tax affairs up to date by declaring and paying unpaid tax on second incomes.
A second income could include:
- consultancy fees, for example, providing training
- organising parties and events
- providing services such as taxi driving, hairdressing or fitness training
- making and selling craft items
- buying and selling goods eg at market stalls or car boot sales
To get the best possible terms you need to tell HMRC that you want to take part in the campaign. If you don’t make a voluntary disclosure and HMRC finds out later that you owe tax, you could end up with higher penalties.
From the date of voluntary disclosure you will have four months to calculate and pay what you owe.