HMRC bid to ‘catch’ those not fully declaring income
HMRC have released a statement that, using new technology and an increased number of staff, they intend to close in on those not declaring all of their income!
The prospect of having to deal with your tax affairs can be daunting and as a result, people will often refrain from registering with HMRC at the appropriate time.
It is common for people to assume they are not subject to tax on income they receive outside of their employment as they do not consider themselves to be ‘business owners’ however there are various sources of income that may give rise to a tax liability.
Examples of possible sources of income that can lead to you needing to pay tax are;
- Rental income received from any properties you may own
- Selling on the internet, car boot and trade magazine sales
- Capital gains made on the sale of an asset
- Being self employed without realising
What if you are already registered as self employed?
Even if you are correctly registered as being self employed you still need to be aware of further tax you may be liable to, for example;
- An increase in sales could suddenly lead to you reaching the threshold at which you need to register for VAT purposes .
- Capital gains made on the sale of an asset
- Rental income received from any properties you may own
Remember, if HMRC discover that you owe taxes, you will also have to pay interest and possibly a penalty.
If you have any concerns that you may fall in to any of the above categories, here is a link to further information provided on the HMRC website; http://www.hmrc.gov.uk/undeclaredincome/gettingstarted/tax-affairs.htm
