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Tutors and coaches have less than one month to clean the slate on tax

News Release issued by the COI News Distribution Service on 07 December 2011

Private tutors and coaches have less than a month left to tell HM Revenue & Customs (HMRC) about any tax that they owe.

They were offered a special tax plan - the Tax Catch Up Plan - in October this year. Registering by 6 January 2012 ensures that tutors and coaches don’t lose out on the best terms to disclose and pay what is owed.

The Tax Catch Up Plan is for people providing tuition or coaching, regardless of whether they have a registered qualification. It is aimed at those who profit from tuition and coaching as a main or secondary income, on which the correct tax has not been paid.

The opportunity is available to people teaching traditional academic subjects, fitness and dance, musical instruments, art, life coaching, personal training and other instruction.

After 6 January 2012, using information pulled together from different sources, HMRC will investigate those who have chosen not to come forward.

Marian Wilson, Head of HMRC Campaigns, said:

“Tutors and coaches who have notified us of their intention to disclose unpaid tax will have until 31 March to tell us what they owe and make arrangements to pay.

“From January we will use the information at our disposal to investigate tutors and coaches who have not declared their full income. I therefore strongly urge anyone in this group who thinks they may have outstanding income tax liabilities to get in touch with HMRC and get their tax affairs in order.

“This is the first step for those with undisclosed income or gains to avoid a full tax investigation and much higher penalties. Contact us before we contact you.”

The Tax Catch Up Plan has two stages:

* By 6 January 2012, tutors/coaches/instructors must register with HMRC to “notify” that they plan to make a voluntary tax disclosure.

* By 31 March 2012, those who have registered to notify must tell HMRC what they owe and pay the tax, interest and penalties due.

People can register online by completing a notification form - www.hmrc.gov.uk/ris/tcup/index.htm - or by calling HMRC on 0845 601 8817. A dedicated team is ready to help, Monday to Friday, 08:00 until 19:30.

Notes to editors

1. Notification can be made online or by telephone.
* To submit notification online - www.hmrc.gov.uk/ris/tcup/index.htm
* To call HMRC - 0845 601 8817; from outside UK +44 120 258 5415.

Having your National Insurance number and self assessment unique taxpayer reference available will be helpful.

2. Once this disclosure window closes on 31 March 2012, those who have not come forward but are found to have unpaid tax liabilities will face investigation, maximum potential penalties of 100 per cent of the tax evaded, or possible criminal prosecution.

3. The terms being made available during this window are in line with those HMRC offers for any full and accurate unprompted voluntary disclosure of tax liabilities.

4. Previous campaigns have targeted offshore investments, medical professionals, people working in the plumbing industry, and businesses trading above the VAT threshold that have not registered for VAT.

5. Follow HMRC on Twitter at: @HMRCgovuk.

NAT 100/11

Issued by HM Revenue & Customs Press Office Press enquiries only please contact:

Contacts:

HM Revenue & Customs Press Office
HMRC-Press-office.NDSmanagement@hmrc.gsi.gov.uk

Patrick O'Brien
Phone: 020 7147 2318
patrick.o'brien@hmrc.gsi.gov.uk

Andrew Bennett
Phone: 020 7147 0051
andrew.bennett3@hmrc.gsi.gov.uk

HMRC Out of Hours
Phone: 07860 359544
NDS.HMRC@coi.gsi.gov.uk