Private tutors and coaches targeted by HMRC

HMRC has launched the Tax Catch up Plan (TCP) for individuals providing tuition, instruction or coaching that have not declared all their income.

Important dates

If an individual has not kept their tax affairs up to date, they have until:

  • 6 January 2012 to register for the TCP; and
  • 31 March 2012 to tell HMRC what they owe for all tax years ending on or before 5 April 2010 and pay the tax due.

What are the benefits?

Individuals who participate in the TCP will pay a tax-geared penalty of up to 20% of the unpaid tax, whereas those who fail to come forward will pay a higher tax-geared penalty of up to 100% of the unpaid tax. 

The other main benefits are that the individuals who participate in the TCP will not have to face a full investigation if they make a full disclosure; and there are substantial savings to be made in terms of the professional costs involved.

What happens after 31 March 2012?

HMRC intends to investigate coaches and tutors that it believes owe tax and these individuals will pay a tax-geared penalty of up to 100% of the unpaid tax.  HMRC has obtained information from third parties concerning coaches and tutors and will use this information to determine whether the individuals named need to bring their tax affairs up to date.

How can Gabelle help?

We specialise in representing clients that wish to make a voluntary disclosure to HMRC and have a great deal of experience assisting accountants and their clients that wish to utilise the disclosure facilities.  We can advise on all aspects of the disclosure process and minimising the tax due.

Please contact John Hood on 020 7182 4747 or via email on john.hood@gabelletax.com if you wish to clarify any aspect of the TCP or making a disclosure.