Online sellers offered chance to settle tax bills

HMRC_representative

Online sellers have just one week to register for tax opportunity

If you trade on the internet and haven’t paid all the tax you owe, you have one week left to register for the e-Markets Disclosure Facility. You need to tell HM Revenue & Customs (HMRC) about your tax affairs before 14 June to get the best terms available.

Under the time-limited opportunity, known as the e-Markets Disclosure Facility, online marketplace traders who come forward to take part in the campaign can benefit from lower penalties than those who wait for HMRC to catch up with them.

HMRC has held two live Twitter chats, on 28 March and 16 May, giving online traders an opportunity to ask questions about the campaign. To view these, check out our twitter feed, or search for the hashtag #emqa


How do I know if I’m trading?
People who are unsure whether their e-marketplace activity could be seen as trading can visit HMRC’s website and watch a supporting YouTube video for advice.

The campaign is aimed at people using online marketplaces to buy and sell goods as a trade or a business and who are not up to date with their taxes. However, people who sell only a few personal items and who are not traders are unlikely to be liable to pay tax on what they sell and are not being targeted by this campaign.

What do I have to do?
Online traders must register with HMRC to “notify” that they plan to make a voluntary tax disclosure by 14 June.
They then have until 14 September to tell HMRC about tax due and make arrangements to pay any tax interest and penalties owed. This is called “making a disclosure”.

How do I do this?
By completing a notification form at: http://www.hmrc.gov.uk/campaigns/notify.htm
Phone HMRC on 0845 601 2944. A dedicated team is available to give information.

The benefit of the campaign is that those who make a full disclosure:
Will be offered a simple and straightforward way to put their tax affairs right
May not be charged a penalty at all, with most receiving a penalty of no more than 10 per cent of tax owed.

Last month, HMRC wrote to over 30,000 people trading on the internet to let them know about the e-Markets Disclosure Facility. Since the letters were issued, additional information from a wide range of sources has been gathered on over 100,000 people and the data is being assessed. After the 14 June deadline, HMRC will begin contacting online traders who have not come forward to take part in the opportunity, if HMRC believes they owe tax. Penalties of up to 100 per cent of the tax owed, or even a criminal investigation, could follow.

Your feedback
We’re keen to have your questions and feedback on the campaign. We will read responses posted in this thread. However, we cannot promise to reply to every post.

dangerousuk2

Did you guys get seller info from Paypal?
Read elsewhere that eBay and amazon haven't handed over any seller data

soolin

dangerousuk2 wrote: »

Did you guys get seller info from Paypal?
Read elsewhere that eBay and amazon haven't handed over any seller data

They probably don't need to, everyone that I am awre of that has been caught by either HMRC or DWP has been turned in by friends or relatives.

dangerousuk2

Yeah there is that I guess.
Hmrc now have data on over 100k people. I'm just curious as to how it was obtained

soolin

dangerousuk2 wrote: »

Yeah there is that I guess.
Hmrc now have data on over 100k people. I'm just curious as to how it was obtained

I suspect it is from a great many sources, but I'm sure there is an 'official' answer.

Crowqueen

I would imagine they can ask for it from organizations and the companies have to hand it over. They do in the case of a police investigation, at least.

HMRC_representative

dangerousuk2 wrote: »

Yeah there is that I guess.
Hmrc now have data on over 100k people. I'm just curious as to how it was obtained

We are gathering information from a large number of sources including: online advertising, seller rankings, our hotlines, and from the eMarketplaces themselves where UK and EU law allow it.

soolin

http://tamebay.com/2012/07/did-paypal-hand-over-my-info-to-hmrc.html

mrs_lds

Can you sell online like gum tree or does same apply

soolin

mrs_lds wrote: »

Can you sell online like gum tree or does same apply

selling as a trader/business doesn't apply to only one venue. Anyone trading, even at a car boot needs to declare to HMRC.