HMRC has been running numerous schemes over the last few months to narrow what it calls the ‘tax gap’ – the gulf between the actual amount of tax paid by UK citizens and corporations and the actual amount owed. Last year the tax gap stood at a not-insignificant £39 billion, and thanks to HMRC’s clamp-downs this has now fallen to a marginally-more-insignificant £35 billion.
Alongside other operations, including a VAT registration amnesty for contractors turning over above £73,000, and an apparently tough new stance on bankrupt businesspeople, HMRC recently announced they were targeting tax-evading footballers with a personal worth in excess of £2.5 million. They have also in recent weeks ended a scheme aimed at tax-dodging plumbers which resulted in several arrests and around £330,000 in owed taxes being collected. This week HMRC have chosen their next target – private tutors.
Using completely non-sinister methods such as a “web robot” HMRC will be tracking down individuals – be they sole traders or limited company directors – who they believe are not “us[ing] the opportunities we provide for them to put their affairs in order on the best possible terms.”
If collared by the scheme, tutors will be liable to pay any owed taxes, as well as additional fines and, in some cases, could be prosecuted.
Exchequer secretary to the Treasury David Gauke said:
“Although these numbers show continued progress by HMRC in reducing the tax gap, there is no room for complacency. Just in the last few weeks, we have challenged offshore tax evaders, closed tax avoidance loopholes and created a new HMRC unit to ensure that the wealthier members of society pay their way.”
Photo by Eric James Sarmiento – CC
Pingback: Online businesses warned to pay their VAT - Legal advice from Freelance Advisor