HM Revenue and Customs (HMRC) has called out to professionals with second incomes, giving them the chance to bring their tax affairs up to date for those who are employed and have additional income that’s not currently taxed.
HMRC is opening its Second Incomes Campaign to those who are employees, resident in the UK and have additional income from working for themselves.
The tax authority’s ‘voluntary disclosure’ campaigns give people the chance to calculate and pay what they owe back to HMRC at the best possible terms.
What is classed as a second income?
Consultancy fees e.g. charges applied for offering training or advice
Arranging parties and events
Providing services such as hairdressing, taxi driving or personal fitness training
Producing and selling craft items
Purchasing and selling goods e.g. at car boot sales, market stalls or online
To understand more about second incomes, HMRC has published a YouTube video encouraging professionals to put them in the picture regarding their tax position.
In order to receive the best repayment terms from HMRC the Second Incomes Campaign allows professionals to do so if their additional income has not been taxed through their main job or a PAYE or Self-Assessment scheme.
To tell HMRC about additional income you can simply fill in a notification form, followed by a disclosure form to disclose and pay what you owe – within four months of receiving HMRC’s acknowledgement of your notification form. Those requiring more time to pay must call the Second Incomes Campaign Helpline before their four-month deadline on 0300 123 0945.
If you’re unsure exactly what you owe, you can use HMRC’s income calculator; although you should only use the calculator if your tax affairs are straightforward and you’re entitled to only basic personal allowances.
Those needing to inform HMRC of more than five years of unpaid tax should use their alternative calculator to put them in the picture.
If you don’t make a voluntary disclosure using the Second Incomes Campaign and HMRC finds out you owe tax at a later date, you could face higher penalties and even criminal prosecution.