Direct sellers offered chance to get tax affairs up to date

HMRC_representative

Direct sellers offered chance to get tax affairs up to date

If you’re a direct seller and haven’t paid all the tax you owe, you’re being offered the chance to come forward and settle your affairs.

The HM Revenue & Customs (HMRC) Direct Selling campaign is a time-limited opportunity to pay the tax, duties and interest you owe and benefit from lower penalties available, rather than waiting for HMRC to catch up with you. 


Who does it apply to?


The Direct Selling campaign is for people who sell directly to customers without the need for a shop. Companies use different terms for those who sell their products; these might be 'agents', 'consultants', 'representatives' or 'distributors'. Direct sellers take commission on the sales they make.

Selling can involve demonstrating products in a customer’s home, at parties or even door to door, often using catalogues. Others may only sell to friends or relatives.


What are your responsibilities as a self-employed direct seller?

Direct sellers are generally self-employed, which means you are responsible for telling HMRC about what you earn, and !calculating and paying your own tax and National Insurance.



However, not everyone in the direct selling industry is self-employed. If you are a direct seller and you are unsure, you could start by checking any contracts, agreements or information sent to you by the company whose products you sell.


You can be employed and self-employed at the same time, for example working for an employer during the day and working for yourself in the evenings or at weekends.


We have a video that can help you understand your responsibilities as a direct seller.

What to do if you started Direct Selling since 6 April 2011

If you have been a direct seller only since 6 April 2011, the campaign is not aimed at you; but you must make sure you are aware of your tax obligations and register with HMRC.

The following e-learning tutorials can provide simple guidance and advice on things you need to consider.


How and when to register with HMRC

There is also a range of simple record-keeping mobile apps available http://www.hmrc.gov.uk/softwaredevelopers/mobile-apps/record-keeping.htm


What does the campaign involve?


Direct sellers can come forward at any time until 28 February 2013, and tell HMRC about any previously undisclosed income.

You must make your 'disclosure' and arrange to pay what you owe, including any interest and penalty due. If you make a full disclosure before the deadline, you may pay no penalty at all; most people will receive a penalty of no more than 10 per cent of the tax owed.



After that date HMRC will begin to contact those who have failed to respond. Penalties of up to 100 per cent of the tax owed or even a criminal investigation could follow.



How do you take part in the campaign if you think you may need to make a disclosure?



To take part complete a disclosure form at: http://www.hmrc.gov.uk/campaigns/dsc-form.pdf

For further help and support about the campaign phone HMRC on 0845 602 3353. A dedicated team is available to take your call.

Your feedback


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


Kam

HMRC Press Office