The latest round of HM Revenue & Customs’ campaigns against tax evasion is the e-markets Disclosure Facility. This targets taxpayers who should be paying tax on income they earn from buying and selling goods direct to others using online marketplaces like eBay.
If you have been selling goods online you need to decide whether it constituted trading and whether you should have included the associated income and expense on previous years’ tax returns.
If you do need to disclose trading activity, as a first step you should notify HM Revenue & Customs of your intention to make a disclosure by 14 June 2012.
You can do this by completing an online notification form.
An actual disclosure, together with an arrangement to make payment of all tax, interest and penalties due must be made by 14 September 2012.
Making a disclosure using the e-Markets Disclosure Facility can greatly reduce the amount of penalties due and should avoid the possibility of criminal investigations taking place. Most disclosures will be subject to a maximum penalty of 10%.
If you’re concerned that you might have been trading online and might need to make a disclosure, then contact us today to discuss your situation.