11:30am Friday 16th March 2012
People in the South West trading on the internet who haven’t paid all the tax they owe have been offered the opportunity to come forward and pay up under an HM Revenue & Customs (HMRC) campaign.
Under the time-limited opportunity, the e-Markets Disclosure Facility, online marketplace traders can pay the tax they owe and benefit from lower penalties available to those who come forward, rather than wait for HMRC to catch up with them.
Marian Wilson, Head of HMRC Campaigns, said: "This campaign is part of a wider HMRC initiative to provide support and guidance to the public on tax evasion and is aimed at people using online marketplaces to buy and sell goods as a trade or business and who fail to pay the tax owed.
"Those in the South West who only sell a few items and who are not traders are unlikely to be liable to pay tax on what they sell and will not be targeted by this campaign. Our aim is to make it easy for online traders to contact us and make a full disclosure of income, thereby putting their affairs in order."
Under the opportunity, online marketplace traders can come forward at any time between March 14 and June 14 to tell HMRC they want to take part.
They then have until September 14 to give details of the tax owed and arrange for full payment, including any interest and penalty due.
If they make a full disclosure of what they owe before September 14, some will receive no penalty at all, with most receiving a penalty of no more than 10 per cent of the tax owed.
After that date, using information pulled together from many different data sources, HMRC will investigate those who have failed to respond.
The department has recruited additional investigators and will pursue those who have failed to declare their earnings and pay up.
Penalties of up to 100 per cent of the tax owed or even a criminal investigation could follow.
To take part, people must register with HMRC to "notify" that they plan to make a voluntary tax disclosure June 14.
They then have until September 14 to tell HMRC about tax due and make arrangements to pay any tax interest and penalties owed. This is called "making a disclosure".
To do this from March 14, complete the online notification form at www.hmrc.gov.uk/campaigns/notify.htm or call HMRC on 0845 601 2944.
A YouTube video is also available giving guidance to people wondering whether their buying and selling on an e-marketplace website can be seen as trading – www.youtube.com/watch?v=uptdjVD2LgI HMRC will also hold an online Twitter Q&A on the e-Markets Disclosure Facility on March 28.
Details will be published in advance on HMRC’s Twitter account at @HMRCgovuk.
More than £500m has been raised by HMRC from voluntary disclosures, and a further £105m from follow-up activity. Previous campaigns have targeted offshore investments, medical professionals, plumbers and VAT defaulters.
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