HMRC has launched its own “search engine” to target internet traders who are dodging tax, according to experts at international accountancy firm Mazars in Birmingham.
Tax partner Ann Bibby said online traders had from March 14 to June 14 in a time-limited opportunity to take part in the latest HMRC campaign.
“HMRC is not targeting individuals who sell the occasional item online, but is cracking down on those using online marketplaces to buy and sell goods as a trade or business and failing to pay all or some of the tax they owe,” she said.
Online traders have until June 14 to come forward and make contact with HMRC to take part. They then have until September 14 to present the details of the tax they owe and arrange to make full payment, including any interest and penalties due.
Ann Bibby said: “Some may receive no penalty at all if they make a full disclosure of what they owe before September 14 and HMRC has said that most who come forward of their own volition will receive a penalty of no more than ten per cent of the tax owed.
“But otherwise the gloves are off.
“The e-Markets Disclosure Facility means that after September 14 HMRC will set about pulling together information from many different sources to investigate those who have failed to respond,” she said.
HMRC has recruited additional staff to investigate and pursue those who have failed to declare their earnings and pay up.
Penalties of up to 100 per cent of the tax owed, or even a criminal investigation could follow. More than £500 million has been raised by HMRC from voluntary disclosures and a further £105 million from follow up investigations.
HMRC has also been running campaigns targeting offshore investments, medical professionals, plumbers and those trying to evade VAT.
Ann Bibby added: “Those running what is effectively a business selling goods online can hardly say they haven’t been warned.
“HMRC has uploaded a video on YouTube – http://www.youtube.com/watch?v=uptdjVD2LgI and on March 28, they are holding a Twitter Q&A on the e-Markets Disclosure Facility.
“Those who think they may have tax to pay can go to http://www.hmrc.gov.uk/campaigns/notify.htm or call HMRC on 0845 601 2944.
“But they might like to consult a tax professional first to ensure that they understand what they have to pay and how much,” she said.