ACCA (the Association of Chartered Certified Accountants) is today warning traders, who use online sites such as eBay, that they could be targeted in a new campaign by HM Revenue & Customs (HMRC) for unpaid tax.
Chas Roy-Chowdhury, ACCA’s head of taxation, said: 'Many people might not realise that buying and selling online means you could be liable for tax. You will only be liable if you are classified as a trader, therefore those that only sell a few items, fairly infrequently, need not worry.
'If you buy and sell through a shop you would need to pay tax, and trading online is no different. If you fall into this category I would advise you to bring your tax payments up to date. You will be far better off paying any tax owed voluntarily, rather than hoping HMRC doesn’t catch up with you.'
In addition to e-traders HMRC will also be focussing on private tuition providers and traders, following on from their targeting of plumbers recently.
These campaigns are designed to target industries where they believe tax evasion is high.
Chas continued: 'If you are unsure whether you are liable to pay tax I would urge you to either contact HMRC, visit their website, or seek the advice of a qualified ACCA accountant.'