14th June Tax Deadline Looming for Online Sellers to Come Forward

People who trade on the internet and haven't paid all the tax they owe have just under one month left to take advantage of an opportunity offered by HMRC to get their tax affairs in order, with more favourable terms available.

HMRC Logo This particular campaign is aimed at people using online marketplaces to buy and sell goods as a trade or a business and who are not up to date with their taxes.

Under the taxman's time-limited opportunity, known as the e-Markets Disclosure Facility, online marketplace traders who come forward at any time between now and 14th June and pay the tax, duties and interest they owe can benefit from lower penalties than those who wait for HMRC to catch up with them.

The benefit of the campaign is that those who make a full disclosure will be offered a simple and straightforward way to put their tax affairs right and may not be charged a penalty at all, with most receiving a penalty of no more than 10 per cent of the tax they owe.

HMRC have stated that once the e-Markets Disclosure Facility expires, they will clamp down on those who have failed to declare earnings and paid the tax that they owe.

Those who sell only a few items and who are not traders are unlikely to be liable to pay tax on what they sell and are not being targeted by this campaign.

Once the 14th June deadline passes, HMRC will investigate any online traders who have failed to respond to the opportunity, using information pulled together from a wide range of data sources. Penalties of up to 100 per cent of the tax owed, or even a criminal investigation could follow.

If you have any questions about HMRC's latest campaign, or if you are an online seller unsure of your tax responsibilities, contact our Tax experts on tel: 0151 255 2300 or complete a quick enquiry form and we will be in touch within working day.

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