7 June 2012
Time running out for online traders to register for tax opportunity
Online marketplace traders are being urged to register for HMRC’s e-Markets Disclosure Facility ahead of the impending deadline.
Sellers who are not up-to-date with their taxes have until 14 June to apply to take part in the campaign, which allows traders to benefit from lower penalties.
While occasional sellers are unlikely to be liable to tax, people who use e-marketplace sites such as e-Bay and Amazon to buy and sell goods as a trade or business may need to pay income tax, national insurance and VAT.
Marian Wilson, head of HMRC Campaigns, said: ‘We want to make it easy for online marketplace traders to contact us and register their intention to take part in the campaign. If you owe tax and don't get in contact, do not assume that HMRC will not catch up with you soon. It’s better to come to us before we come to you.’
The majority of traders who make a full disclosure are likely to receive a penalty of no more than 10% of the tax they owe.
Those who do not come forward by the deadline may face penalties of up to 100% of the tax owed or they may even find themselves the subject of a criminal investigation.
The campaign is just one of many attempts by HMRC to recoup unpaid tax. Previous campaigns have targeted offshore investments, medical professionals, plumbers, VAT defaulters, coaches and tutors, and electricians.
More information and details of how to register for the e-Marketplace Disclosure Facility can be found at: www.hmrc.gov.uk/campaigns/notify.htm.
If you want further information, use our online form to get in touch.