It’s old news that HMRC are targeting people selling on emarketplaces with undeclared income, but if that’s you or someone that you know it’s time to come clean and get your affairs in order. The HMRC e-Markets Disclosure Facility (e-MDF) gives you the option to declare your income in the most painless manner, not doing so will doubtless mean declarations will be a lot more painful and punitive when they catch you.
HMRC explain that it’s in your advantage to voluntarily come forward as if you take part in the e-MDF and tell them about any income that you haven’t previously disclosed:
- You may only have to pay for a maximum of six tax years
- You can tell HMRC how much penalty you should pay (Choice of 0%, 10% or 20%)
- You may be able to pay what you owe by instalments
It’s basically a ‘fresh start’. You can stop worrying about what might happen when HMRC find out that you’ve not been telling them about all of your income. It’s a chance to start getting things right from now on, whilst knowing exactly how much it’s going to cost to sort out things for earlier years.
You’ll find out all the information you need on the HMRC e-MDF microsite including links to the declaration forms. To take part in the e-MDF you need to notify HMRC by the 14th June 2012 but that’s all you have to at the moment to come clean but it also means that HMRC will leave you alone and not come knocking for full penalties for the next few months. After that you must make your disclosure and pay what you owe by 14 September 2012.
Thanks to Mark of Netseek for the link to the e-MDF microsite