HMRC are writing to taxpayers who they believe have sold services online but have not advised HMRC of this. The letters state that HMRC hold third party information that shows the taxpayer’s trading activity.
Taxpayers are requested to complete a “Certificate of Tax Position” within 30 days and tick the box that best describes their position. The CIOT notes that agents should consider carefully whether a client should sign and return this document.
HMRC suggest that if taxpayers have previously undeclared income to disclose they must submit a Notification of Intent to disclose it, using HMRC’s Digital Disclosure Service (DDS) process. However, other methods may be more appropriate, e.g. Code of Practice 9 if fraud is suspected.
The letters have been copied to the taxpayer’s agent where applicable.