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HMRC unveils disclosure facility for online traders

printer Mail

HMRC is offering online traders who have not paid their taxes the opportunity to ‘come forward and pay up’ and benefit from lower penalties.

Under the ‘e-Markets Disclosure Facility’, traders have until 14 June to tell HMRC that they wish to make a disclosure: ‘They then have until 14 September 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 14 September, some will receive no penalty at all, with most receiving a penalty of no more than 10% of the tax owed.’

HMRC will then investigate those who have failed to respond, using information from various sources.

‘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% of the tax owed or even a criminal investigation could follow,’ HMRC said.

‘Those 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,’ said Marian Wilson, Head of HMRC Campaigns.

HMRC published a YouTube video to help people decide whether they are trading, and further guidance is available on the HMRC website.