KPMG warns today that HMRC has launched a campaign targeting people who sell goods and services online for profit.
The campaign is aimed at people using e-marketplaces to buy, sell or swap goods on a regular basis in order to make a profit, but who may not be paying tax on this income.
Paul Harrison, tax partner at KPMG in the UK, said: “Today sees another example of HMRC’s commitment to target groups of people who may not be paying the correct amount of tax at the right time. This time online traders are in the spotlight and the taxman is offering the chance to those ‘trading’ online without paying tax to come forward voluntarily and put their tax affairs in order.
“The reality is that only a small percentage of people using these sites will be classed as trading by HMRC, but the tax they owe could be significant. If you do buy and sell goods online on a regular basis with the aim to make a profit then you should seek advice on your position. The Revenue is offering a ‘fresh start’ for those who come forward in the next three months. Miss this window and it’s likely you’ll face a higher penalty and harsher terms than the ones currently on offer.”
What classes as “trading” online?
HMRC has set up a website with questions to help people decide if they class as an online trader and is offering preferential terms to those who come forward before 14 June 2012. http://www.hmrc.gov.uk/campaigns/emarket.htm
For further information please contact:
Margot Cowhig, KPMG Corporate Communications
Tel: 0207 694 4246 Mobile: 07920 274856: email@example.com
Follow us on Twitter: @KPMG_UK_LLP
KPMG Press Office: 0207 694 8773
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 11,000 partners and staff. The UK firm recorded a turnover of £1.7 billion in the year ended September 2011. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 152 countries and have 145,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.