HMRC after a share of your Honey Sales?

[Philip]

An interesting offer from Mr HMRC, for those that in past discussions here who thought that the tax man was not interested in your honey sales!

"On 9 April 2014 HMRC published details of their latest campaign to encourage taxpayers to declare and pay unpaid tax on second incomes.

HMRC will expect settlement of any taxes due four months from the date of declaration of untaxed income sources to HMRC.

The types of income highlighted by HMRC include:
•consultancy fees, for example, 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

If you have undeclared income, making use of this disclosure opportunity should reduce any penalties HMRC may charge you. If you don’t make a voluntary declaration, and are discovered by HMRC, then the penalties you will be charged will be much higher.
•If you make a voluntary disclosure penalty rates are 0%, 10% or 20% depending on the circumstances.
•If you don’t make a voluntary disclosure these rates can rise to 100% of the tax underpaid.
•If the non-disclosure involves offshore liabilities the penalties can increase to 200%."

It may be of interest to some of us.....

 

[Erichalfbee]

Well, I'm happy to declare my paltry Farmers' Market income as long as I can offset all my costs

 

[TOBY-3652]

Well, I'm happy to declare my paltry Farmers' Market income as long as I can offset all my costs

you certainly can

 

[jd101k2000]

It's like any income. However, I don't think many hobbiests actually make a profit. Just more paperwork to prove it.

 

[Philip]

Off setting costs is a given.

Its the penalty for failing to declare that will potentially give them a good rake off, as for records if there are none then thy can claim as they wish, how you going to prove otherwise.

just something to keep in mind, or not.... your call

 

[Nige.Coll]

cost v profit.
I think hmrc will be glad we aren't claiming back.

 

[Stiffy]

you certainly can

We declare all our income from sales and use an accountant to file returns. As we offset our costs we get a rebate. This year we look like making a small profit so may have to start paying tax, will see what accountant says!
S

Sent from my Nexus 7 using Tapatalk

 

[cjhart2]

Always declare all extra income but as has been mentioned , capital allowances and expenses mean that the tax man does not see anything . Make sure you have the class 4 exemption certificate as well , that is the killer . Also with the tax free allowance and as this is meant to be SWMBO 's hobby it goes on her tax not mine . Also it stops busy bodies dobing you in , if you get dobbed in , you have to pay the tax they want you to pay , not what you actually owe .

 

[alldigging]

if you get dobbed in , you have to pay the tax they want you to pay , not what you actually owe .

As I understand it they suggest a tax figure and then you have to prove you owe less.

 

[Ben90]

So let me get this straight... In light of everything that's happened recently, HMRC are opting to go after "makers and sellers of craft items" for a few pennies of extra tax instead of going after the multi-millionaire tax avoiders?

Unbelievable.

 

[jenkinsbrynmair]

So let me get this straight... In light of everything that's happened recently, HMRC are opting to go after "makers and sellers of craft items" for a few pennies of extra tax instead of going after the multi-millionaire tax avoiders?

Well, don't panic everyone - it's an easy way to get some 'voluntary' payments. Chuck this announcement out. Most people say 'soddit' ignore it. End of story - no great use of manpower from HMRC. A small group of people (made up of the gullible, herd followers and the very conscientious) get their knickers in a twist, run to the tax office and hand a wodge of cash over. Again no great use of resources by big brother, a few boxes have been ticked, a small amount of 'grey tax' which would have been 'written off' at the end of the year has been successfully collected, someone gets a gold star on his annual report. The gullible and self righteous can sit back feeling smug that they have avoided the (almost non existent) long arm of the taxman heavy mob and have single handedly saved the NHS. Everyone's happy.
(not that i know anything about tax collection )

 

[Hivemaker.]

So let me get this straight... In light of everything that's happened recently, HMRC are opting to go after "makers and sellers of craft items" for a few pennies of extra tax instead of going after the multi-millionaire tax avoiders?

Unbelievable.

They should perhaps spend a bit more time going after these types as well
..........http://www.beekeepingforum.co.uk/showthread.php?t=7862&highlight=george+osborne

 

[Swarm]

Spot on!!

 

[Erichalfbee]

you certainly can

I don't think so

The amount I spend on this ridiculous hobby is shameful.......at least it keeps me off the booze....mind you I've just discovered that the melomel I make is rather nice.

 

[cjhart2]

have single handedly saved the NHS.

Ah the Welsh NHS

 

[MandF]

I think the main audience for this statement are those who basically buy/make and sell items at markets and on ebay full time, and who are therefore generating a not insignificant tax free income.

As Jen said though, there will undoubtedly be a few people not in the target audience who will get spooked and voluntarily hand over some cash.

 

[cjhart2]

As Jen said though, there will undoubtedly be a few people not in the target audience who will get spooked and voluntarily hand over some cash.

But if you stick to the rules and use the rules , you do not have to hand over any money . Self assessment on line is such as easy way to " make sure " you do not " pay more than you need to " if you get my drift .

 

[jenkinsbrynmair]

Ah the Welsh NHS

hmm - from your high vantage point of superiority can you see any difference in the english NHS? the 'care' pathway comes to mind for one - a fancy name for putting old people down to save money on treating them just in cae they last longer than a couple of weeks. Stafford,Basildon, Thurrock - seems that's all old Brucie keogh is doing is putting up a good old smokescreen to hide his own failings.
It seems the health service is going t!ts up all over the UK (and Scotland). But then again, for something set up with a projected lifespan of 25 years to get Britain on its feet after the war it's not doing too badly.
If you think it was designerd to get poorer people affordable healthcare but the more well off jumped on the wagon as well and invested the money they would have spend on their health or went on foreign holidays.

 

[Dishmop]

Have watched programs on TV where they chase tax dodgers and benefit cheats for weeks/months...it costs them a fortune and the cheats and fraudsters get a slap on the wrist...

 

[Moggett]

Have watched programs on TV where they chase tax dodgers and benefit cheats for weeks/months...it costs them a fortune and the cheats and fraudsters get a slap on the wrist...

Far easier to target decent people who are easily intimidated because they respect authority, and don't act in a threatening way or offer violence.