Calling all tutors and coaches – will you be caught out?
Posted: Wednesday 8 February 2012
People often earn extra money by tutoring or coaching in a range of sectors, ranging from academic subjects to sport, leisure, and music tuition. Did you know that any money earned by tutoring or coaching is taxable and therefore should be declared on your Self Assessment tax return?
What happens if you haven’t told HMRC by 6 January 2012?
If you have not notified HMRC that you intended to disclose your tax liability before 6 January 2012, you can still do so but it will not be under the TCUP. If you do this voluntarily, you are more likely to reduce any penalties that may be due and it gives you the opportunity to get your tax affairs in order.
What happens if you never tell HMRC?
If you do not tell HMRC of any undeclared income then it will be treated very seriously. HMRC has extensive legal powers to obtain information and identify those who have failed to declare income and pay the right tax. You must tell HMRC of any outstanding tax liabilities as the result could be either a heavy penalty or, in severe cases, a criminal prosecution.
Morton Fraser’s tax team can assist you on any aspect of the TCUP, disclosing any undeclared income to HMRC or with your tax affairs generally. You can read our factsheet which explains more here.
For further advice, please contact Sarah McKinlay, Partner at Morton Fraser on sarah.mckinlay@morton-fraser.com or 0131 247 3150.
