Clock is ticking for self-employed direct sellers

Self-employed people selling directly to customers and who haven’t paid all the tax they owe have one month to come forward and pay up under an amnesty from HM Revenue and Customs.

Under the time-limited opportunity, direct sellers – often known as agents or consultants - must tell the Revenue about the tax due and make arrangements to pay before February 28 2013.

Direct selling involves selling directly to customers and taking commission on sales without the need for a shop. It can involve demonstrating a product in a customer’s home or selling at a party.

From today, HMRC will be writing to direct sellers to let them know about the Direct Selling campaign.

But after the February 28 deadline, HMRC will begin contacting direct sellers who did not come forward to take part in the opportunity, if Revenue officials believe they owe tax.

Marian Wilson, head of HMRC Campaigns, said: “Anyone involved in direct selling who has not told HMRC about all of their income might not be paying the right amount of tax. The Direct Selling campaign is a chance to bring their tax affairs up to date, on the best terms.”

Direct sellers are generally considered to be self-employed, and are therefore responsible for telling HMRC about what they earn, and for calculating and paying their own tax. More information on tax for the self-employed direct seller is available on the tax authority’s website.