Local residents who have used online auction sites like Ebay to make money are warned to check their tax liabilities by one firm of switched on local accountants.
Turner Peachey has an office based in Welshpool and is warning local residents to ensure their tax affairs are in order to avoid an unwelcome nudge from inspectors.
The firm points out that HM Revenue & Customs have been given additional investigative powers to bring in an additional four billion pounds of tax for the Treasury before April 2013. Two previous campaigns have raised £2.2 million from the medical profession and £4 million from plumbers and there were a number of arrests.
More recently HMRC have written to 300 colleges to try and catch tutors and coaches avoiding tax and had the VAT Initiative campaign to catch those who should, but have not, registered. There are currently live campaigns regarding electricians and electrical fitters. Future campaigns will include a “sweep up” of all skilled trades such as roofers, carpenters, bricklayers, joiners and window fitters in what the Revenue have described as a “Home Improvement campaign”. Those engaged in direct selling, or who have failed to file a tax return when asked to do so, will also be the target of future campaigns.
But recently the Risk and Intelligence Service of HMRC, based at the Centre for National Information at Llanishen in Cardiff, has issued notices requiring Online Auction Sites to provide information about the members’ registers which they keep. The purpose is to identify those who may not be fully declaring their income for tax purposes. One of the powers which HMRC have to obtain this information is to impose an initial penalty for failure of £300 followed by up to £60 per day for any continuing failure.
A spokesperson for Turner Peachey said: “Clearly, HMRC are using the new weapons that they have to bring down the hammer on Auction Sites. If you want to know more about these campaigns by HMRC then simply visit
http://abtx.co/IY54P1 or contact David Walker at Turner Peachey 01743 273999 or
davidwalker@turner-peachey.co.uk.”