The government is clamping down on online traders in the search for tax evaders, entrepreneurs have been warned.
A Which? guide, released next month, has warned those businesses that regularly trade on online auction sites to ensure they stay on the right side of tax regulation, as failure to do so could mean a hefty fine or even imprisonment.
According to The Tax Handbook 2007/8, published on May 14 2007, Her Majesty’s Revenue and Customs (HMRC) is allocating substantial resources to a clampdown on self-employed workers who fail to declare their earnings.
HMRC plans to target traders using online auction sites such as eBay in particular, Which? warned.
Tony Levene, author of The Tax Handbook 2007/8, commented: “Tax affects us all, so whether you’re employed, self-employed, retired, saving or investing, it’s vital to get your tax affairs in order and ensure that you’re paying the right amount – and making the most of the tax breaks that are on offer.
“Arm yourself with the facts, keep all your financial paperwork in order and if you complete a tax return don’t leave it until the last minute – miss the deadline and you’ll face a £100 fine.”
© Crimson Business Ltd. 2007