Private tutors, musical instrument teachers and fitness instructors face a clampdown by the taxman trying to catch out after-hours teachers who are paid cash-in-hand by middle class families.
In its latest attempt to claw back some of the UK’s £35bn in unpaid taxes, Her Majesty’s Revenue & Customs will target the country’s 500,000 private tutors for undeclared tax.
HMRC believes that the majority of tutors use private lessons as a second source of income to supplement their day job. Tutors are therefore likely to be paid in cash and many may not declare their earnings to the tax man.
Under HMRC’s new Tax Catch-up Plan (TCP), it has given tutors and coaches until the end of March next year to come forward and declare their outstanding tax for the year to April 2010.