HMRC Clamping down on eBay Traders

HM Revenue & Customs, the beloved institution held in high esteem by all, has announced that it will be clamping down on eBay traders who are failing to declare their income. Over 30,000 people who are believed to using the online auction site regularly without paying income tax have received letters reminding them of their obligation to pay tax and inviting them to pay early and benefit from reduced penalties.

The crackdown is aimed at those who regularly sell items at a profit and should not be a cause for alarm by those who occasionally use the site, as the latter can not be said to be trading and are unlikely to have to pay tax. Those who decline the offer of a reduced penalty may be subject to prosecution, in addition to having to pay higher penalties than those currently being offered.

The letters have stipulated a deadline of 14 June for traders to come forward and to declare their income in order to benefit from the reduced penalty, which is 10%-20% of the total tax due. Those who do not come forward could potentially face a penalty of 40%-100% of the tax due.

Unlike most eBay auctions, traders are urged not to leave everything to the last minute in a bid to settle matters.

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