A new HMRC campaign has been launched targeted at employees with a source of self-employment income who have not returned the income and paid the tax thereon.

The campaign is available to anyone who is an employee and is UK tax resident with a source of additional income from self-employment such as:

• consultancy fees, e.g. 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, e.g. at market stalls or car boot sales

Those eligible to participate are required to notify HMRC of their intention by completing the notification form followed by a disclosure within four months of the date HMRC acknowledge receipt of the original notification of intention to participate.

It should also be noted that the unpaid tax, interest and penalties must also be settled within that four month window though a longer period may be agreed if HMRC are contacted in advance.

Those who fail to come forward and qualify under the campaign will face higher penalties and possible criminal prosecution.