HMRC is soon to launch their “Private tuition and coaching campaign.” A campaign aimed at freelance tutors that have not fully declared their earnings regardless of whether it is their primary or a secondary source of income. The campaign will cover the tax years 2008/09, 2009/10, 2010/11. The declared objective of the campaign is to:
“address the risk posed by professionals who, because of their field of expertise, are able to profit from providing tuition and coaching – either as a main or a secondary income that they choose not to tell HMRC about. It covers people providing private lessons, regardless of whether they have a teaching qualification, and could include, for example, fitness/dance/lifestyle coaches through to national curriculum subject tutors and others.” – HMRC
HMRC has already written to distance learning establishments, language schools and other providers of vocational courses asking them to provide returns requiring them:
“to make and deliver returns of payments for particular services that you made to recipients who are not your employees.” – Letter to educational establishments
and information on:
“Gross payments made for teaching, lecturing, tutoring, examining and invigilating, from which no PAYE tax has been deducted, for the years ended 5 April 2009, 2010 and 2011.” – Letter to educational establishments
It is also believed that HMRC has already obtained information from Education Authorities containing details of payments made to freelancing tutors and coaches.
If you believe you have received any tuition fees between 5 April 2008 and the present and have not declared these earnings to HRMC, contact us for a free confidential consultation. HMRC typically look favourable upon those that put themselves forward voluntarily.
>>> UPDATE >>>>>>>
HMRC have issued a bit more info about the process for coming clean, see it here.
Under the plan, tutors and coaches have until 31 March 2012 to come forward and tell HMRC about their outstanding tax for the years up to 5 April 2010, and pay what they owe. The plan makes it easy for customers to put their tax affairs right and keep them on the right track in the future.
Those who come forward by the deadline are likely to receive the best possible terms for paying the tax owed. If they have to pay a penalty, it is unlikely to be more than 20 per cent of the unpaid tax. Those who wait for HMRC to come to them will find that they have to pay much higher penalties, or even face criminal prosecution. After 31 March, using information pulled together from different sources, HMRC will investigate those who have chosen not to come forward.