HMRC has warned Internet traders that time is running out if they want to take advantage of the e-Markets Disclosure Facility.
Online marketplace traders have until the 14th of June to come forward and sort out their tax affairs if they want to get the best possible penalty terms. Once registered, traders will have to pay their outstanding tax bill no later than the 14th of September. Once the facility has expired, the Revenue will come down hard on any traders who have not declared their earnings and paid their outstanding tax liabilities.
This campaign targets people who use online marketplaces as a means of trading. Those who just sell the occasional item through eBay are not classed as traders and therefore will not be liable to pay tax on the goods they sell.
Marian Wilson, the Revenue’s head of campaigns, said the department aimed to make it easy for online traders to get their tax affairs sorted out. She went on to explain that HMRC has been gathering intelligence from various sources thus enabling it to identify the people who should make a disclosure.
Online traders will be able to participate in a live question and answer session on Twitter this evening between 7pm and 8pm.
This is one of a series of disclosure opportunities that enable people who have not been 100% honest when it comes to declaring their taxes to put things right. However, if you ignore the opportunity and continue to hide, you could be slapped with a 100% penalty.