Blog Post

HMRC Targets Online Traders Over Unpaid Tax

Forths • January 13, 2017

HMRC is using new powers to target individuals who have unpaid tax from online trading.

In September last year HMRC obtained powers to allow its team of investigators to monitor online trading websites such as eBay. The new laws mean that websites can be forced to hand over details about its customers, whether HMRC has evidence about suspect tax avoidance or not.

Unpaid Tax on Online Trading - Call 0113 387 5670 to make a Tax Disclosure

Among the details that HMRC can access include names, addresses, email addresses, phone numbers, bank account numbers and trading patterns including transactions made using payment websites such as Worldpay and PayPal.

HMRC will also be monitoring holiday rental websites such as Airbnb to target individuals it suspects of having unpaid tax on rental income. If an individual has unpaid tax on rental income, they can make a voluntary disclosure through the Let Property Campaign.

According to reports HMRC can then input this information into its new Connect database that will highlight anyone who has unpaid tax, whether intentionally (tax evasion) or mistakenly (tax avoidance).

Voluntary Tax Disclosures

Figures revealed state that around 870,000 people make money through online trading of goods of services, but that they are unaware of their obligations to declare this to HMRC and pay tax on the income generated.

It is estimated that this figure will grow to one million in 2017.

HMRC’s new focus on online traders is an extension to the Credit Card Sales Campaign which was launched in 2016 and is aimed at individuals and businesses who accept payments for goods and services by card.

If you have unpaid tax on income generated from online sales or rental income, you may fall onto HMRC’s radar. There are a number of tax disclosure options available to bring your tax affairs up to date with HMRC

To discuss your circumstances in complete confidence with our tax investigations and disclosures professionals, call us on 0113 387 5670, email us at enquiries@forthsonline.co.uk or fill out an Enquiry Form and we’ll be in touch with you directly.

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