The Second Incomes Campaign gives you the chance to bring your tax affairs up to date if you’re employed and have additional income that’s not taxed.
Who can do this:
You can take this opportunity 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
A second income could come from:
*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
Get the best terms
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
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’ll have 4 months to calculate and pay what you owe.
How to tell HMRC about additional income
You have to:
1.Fill in a notification form.
2.Fill in a disclosure form to disclose and pay what you owe within 4 months of receiving HMRC’s acknowledgement of your notification.
You can use the calculator to help you work out what you owe. You should only use this calculator if both of the following apply:
your tax affairs are straightforward
you’re entitled to only basic personal allowances
There’s a different calculator if you need to tell HMRC about more than 5 years of unpaid tax .
If you need more time to pay, call the helpline before your 4-month deadline.
If you don’t make a voluntary disclosure and HMRC finds out later that you owe tax, you could get higher penalties or face criminal prosecution.