Taxman could be watching if you buy and sell on the internet
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Watch out if you buy and sell large numbers of items on the
internet - the taxman may be after you soon.
HM Revenue & Customs (HMRC) is planning to target an
increasing number of sole traders and small companies across the
South East who do business online.
This latest campaign will focus on individuals such as private
tutors and coaches, including fitness instructors, and people who
buy and sell items as a trade on the internet, alongside tradesmen
with a turnover above £73,000 who are not yet VAT registered.
Err on the side of caution or you could end up in court, says
Kevin Hall, tax investigations director at accountants Baker Tilly
in Kent.
"There are many people who buy and sell small numbers of items
on the internet who won't be affected by HMRCs latest campaign.
However, it is important that those who are making a living out of
the practice, and those who sell more than a few items a year, are
fully aware of the tax implications and obligations that they are
subject to.
"The same applies to individuals who are earning a living as
tutors or a coach, whether this is their main career or to
supplement another job - tax and NIC are often overlooked, and HMRC
knows.
"Unfortunately, for the many small businesses and sole traders
at risk from this new campaign, ignorance is no form of defence,
and the consequences could not only be costly, but in some cases
will lead to criminal charges and convictions. HMRC is known to be
looking actively for many more prosecutions of tax cheats."
The latest in a number of recent efforts made by HMRC to catch
individuals and businesses evading tax include using technology,
such as "web robot" software, which searches the internet to find
information on specified people and companies.
Thursday, July 28 2011
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