E-Marketplace Disclosure Facility Closes Soon

Ray Stewart Business, Online Business, Tax Matters 0 Comments

The Tax Office “amnesty” of reduced penalties for e-marketplace and e-auction website traders, that started on the 14th March 2012, is drawing to a close. The intention to make a disclosure has to be lodged with HMRC by the 14th June 2012 and the completed disclosure form and payment should reach HMRC by the 14th September 2012.

HMRC claim that penalties levied under this scheme will be capped at a maximum of 10% of the tax due, and in some cases waived altogether.

This is the latest scheme to try and encourage unregistered tax payers to fall into line and is no doubt fueled by the recent success of prosecutions made as a result of the Plumbers Tax Safe Scheme…  For example:- Four month prison sentence suspended for a year and tax recovered of more than £4 Million.  Big money is involved.

This facility does not only apply to eBay, but to any online marketplace/auction websites where people are known to trade to either provide or supplement their income.

There is a stark warning from HMRC about this facility:-

“Our aim is to make it easy for online marketplace traders to contact us and make a full disclosure of income, thereby putting their tax affairs in order.

“I urge online sellers who think they owe tax on their income to get in touch and get their tax affairs in order, simply and on the best possible terms.

“The information and intelligence we gather is from a wide range of sources and it allows us to target those who should come forward as part of the e-Markets Disclosure Facility.

“If you owe tax and don’t get in contact, do not assume that HMRC will not catch up with you.”

I would urge anyone considering disclosing under this facility to speak first to an accountant so you are fully briefed about potential wider consequences of disclosing.

Please do not hesitate to contact me if you are thinking this may apply to you.

HMRC have made it very clear that they are declaring war on unregistered traders and are going to focus their efforts on this area after the deadline has passed.

~Ray

Ray Stewart
I am a qualified Certified Practising Accountant having passed my final exams way back in 1981. I actually can’t believe that was 33 years ago!! Anyway, I am now in my 50’s and I have been running my own business since May 1983. And before you ask, no, I have never regretted a moment of it! Part of the membership requirements of my professional body now dictate that I spend quite a lot of time on “CPD” - continuing professional education (one of their better ideas) - and over the last two years I decided to study business growth and marketing. I have learnt such a lot and that knowledge has radically changed my old “accountants” approach to business. It has made such a difference to the way I work and operate I feel that I just have to pass on this knowledge. It is simply too powerful to hold back!! - but I will try and do it in simple terms rather than expecting you to spend hours, as I had to, working through the difficult language that trainers seem to use to pass on their concepts. I hope you find the blog a useful resource and interesting place to visit as the months pass. I will do my best to keep up the flow - but if there are any topics you would like me to cover, then please let me know. Ray Stewart
Ray Stewart
Ray Stewart

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