The taxman has started a campaign to target private tutors and coaches who owe tax.
The campaign, revealed by Accounting Web in June, will include personal fitness trainers, academic tutors and dance coaches, regardless of whether they have a teaching qualification.
HM Revenue & Customs said its campaign is aimed at people who use tuition and coaching, as a main or secondary income and who haven’t paid tax on the income.
Tutors and coaches have until 31 March 2012 to come forward and tell HMRC about their outstanding tax for the years up to 5 April 2010, and pay what they owe. The plan makes it easy for customers to put their tax affairs right and keep them on the right track in the future.
People who come forward by the deadline are more likely to receive more lenient penalties – probably no more than 20 per cent of unpaid tax.
Those who wait for HMRC to come to them will find that they have to pay much higher penalties, or even face criminal prosecution.
About Nick Huber
I’m a specialist business journalist and have a particular interest in tax and technology.