Lets face it there is a huge shortfall in the public coffers and in part HMRC are expected to contribute to this by increasing the tax revenues generated. The new tatctic from HMRC though is to announce in advance which areas they will be focussing on because they believe that there are extra tax revenue to be generated.

Unfortunately for those in the teaching profession you could be a target. In the world of pushy parents and the desire for our children to excel the demand for private tuition has increased. And HMRC are aware of this.

Lets face it there is a huge shortfall in the public coffers and in part HMRC are expected to contribute to this by increasing the tax revenues generated. The new tatctic from HMRC though is to announce in advance which areas they will be focussing on because they believe that there are extra tax revenue to be generated.

Unfortunately for those in the teaching profession you could be a target. In the world of pushy parents and the desire for our children to excel the demand for private tuition has increased. And HMRC are aware of this.

In a recent HMRC announcement they have stated that in 2011/12 they will turn their attention to those who provide private tuition and coaching. According to HMRC’s statement “This addresses the risk posed by all professionals who, because of their field of expertise, are able to earn money from providing tuition and coaching – either as a main or a secondary income. It covers people providing private lessons, regardless of whether they have a teaching qualification, and could include, for example, fitness/dance/lifestyle coaches through to national curriculum subject tutors and others.”

Historically, investigations such as these have included an amnesty whereby a timeframe has been set for people to be able to come forward and declare any tax owed to HMRC without incurring further penalties. But what is unusual about this new initiative for tutors, is that there are no amnesty dates specified or detail included about leniency towards those who have made a voluntary disclosure.

But how will HMRC obtain its information?

In this situation with tutors and coaches, HMRC is searching for evidence of a second income and its sources of information will be less detailed and reliable than in their previous industry investigations. It is likely that HMRC will target people based on web searches identifying individuals providing services independently and then matching those advertisements for commercial services with information declared on personal self assessment tax returns.

So, if you have a side line in 11+ tuition, or even personal training, but your tax return (if you do one) says otherwise – you may face a tough enquiry from HMRC in the future if you fail to take advantage of the current disclosure opportunity.