The Second Incomes Campaign provides an opportunity for individuals in employment to bring their tax affairs up to date if they have undeclared additional income and they have produced a guide to assist those wishing to make a disclosure.
HM Revenue and Customs (HMRC) believes that its customers want to pay the right amount of tax and wants to help those that are not paying the correct amount to put that right.
The Second Incomes Campaign is an opportunity for individuals to bring their tax affairs up to date if they have additional income that is not taxed through their main job or another Pay As You Earn (PAYE) scheme. People with undeclared income can get up to date with their tax affairs in a simple, straightforward way and take advantage of the best possible terms.
If they owe tax on their income they must tell HMRC about any unpaid tax now. They will then have 4 months to calculate and pay what they owe. This guide explains how they can do that.
Examples could include:
fees from consultancy or other services such as public speaking or providing training payment for organising parties and events or providing entertainment income from activities such as taxi driving, hairdressing, providing fitness training or landscape gardening profits from spare time activities such as making and selling craft items profits from buying and selling goods, for example regular market stalls, boot sales etc This is a very important facility for those who wish to take advantage of potentially reduced penalties.“The Second Incomes Campaign offers the best possible terms available to get your tax affairs in order. You can take advantage of these by notifying your intention to participate and cooperating with HMRC to make a full disclosure and payment.
When you make your disclosure you can tell HMRC how much penalty you believe you should pay. What you pay will depend on why you have failed to disclose your income. If you have deliberately kept information from HMRC you will pay a higher penalty than if you have simply made a mistake
You may not have to pay any penalty at all but if you do it is likely to be lower than it would be if HMRC finds out you have not paid enough tax.
Don’t worry if you cannot afford to pay what you owe in one lump sum, if your circumstances warrant it, you will be able to spread your payments.”
