Her Majesty’s Revenue and Customs (HMRC) ceases to offer a warning for tax without forgiveness. HMRC has decided to target professional sellers who are lagging in tax payments, and they will have to repay with penalties. These sellers have been given orders to pay the taxes they owe added with the interest and fines calculated on the full amount. HMRC has released over 30,000 notification letters and trading sites have been ordered to provide the officials with complete details about the sellers.
Authorities are carrying out cross checks on the self-assessment data of taxpayers with information available on their websites. HMRC commented: “If you owe tax and don’t get in contact by the deadline, do not assume that HMRC will not catch up with you soon. It’s better to come to us before we come to you.”
It is quite evident that the HMRC authorities are clearly warning professional sellers to make their tax payments at the earliest before actions are taken over them. Tax consultants have however suggested that the aim of the targeting programme is not at those selling personal items gathered from garages or lofts.
Till date, voluntary amnesty has been able to make a collection of over £500m extra cash into the reserves of the tax office. The examination increased for online traders a day after the executive of eBay, Devin Wenig revealed a new logo. He commented that the new design aimed at displaying a shift made by the online site to distance from auctions, buy it-now merchandise and collectibles towards full-priced items. The shift has been strategic, with a series of incremental changes introduced by eBay as it tries to increase profit returns. Nevertheless, changes have been criticized on the criteria that the site is now crowded with numerable items that are similar, offered for sale by traders. There are complaints made by others that foreign sellers now exist on domestic eBay sites and the advanced option to automatically achieve “best feature”.
If you have found your business in a similar scenario it can be alarming, but don’t hesitate to act. Contact Yorkshire Accountancy today for advice on how to deal with this in the correct manner.