HMRC Second Income Campaign

September 22, 2014

Do you have a second income that you have not yet declared to the taxman?

HMRC are running a campaign aimed at people who are employed but also have an income from self employment. If you have not yet declared this income now is the time to “come clean” and bring your tax affairs up to date.

Many people already account for this income via a self-assessment tax return but HMRC are targeting individuals who have yet to make a disclosure. If the individuals concerned do not use the opportunity to make a voluntary disclosure, and HMRC catches up with them later, they face heavier penalties and possibly prosecution.

Who can do this?

This opportunity is open to you if:

  • you’re an employee
  • you’re resident in the UK
  • you have additional income from working for yourself

What counts as a second income?

HMRC gives the following examples:

  • consultancy fees, eg for providing training
  • organising parties and events
  • providing services like taxi driving, hairdressing or fitness training
  • making and selling craft items
  • buying and selling goods, eg at market stalls or car boot sales

You need to tell HM Revenue and Customs (HMRC) if your additional income hasn’t been taxed through either:

  •  your main job
  • another Pay As You Earn (PAYE) scheme
  • Self Assessment

This is called a ‘voluntary disclosure’. To get the best possible terms you need to tell HMRC that you want to take part in the campaign. You will have 4 months to calculate and pay what you owe.

How do I make a voluntary disclosure?

You will need to:

  1. notify HMRC that you wish to make a disclosure
  2. complete a disclosure form and pay what you owe within 4 month’s of receiving HMRC’s acknowledgement of your notification

There is more information in Second Incomes Campaign: your guide to making a disclosure.

HMRC also has a Second Incomes Campaign Helpline: 0300 123 0945 and an HMRC campaigns video.

The notification form and the disclosure form are available online.

There are no fixed deadlines by which everyone must notify and then disclose. However this campaign will not run indefinitely so now is the time to act. Please contact us for further advice.

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