Direct sellers who have failed to pay the full amount of tax they owe have less than one month to take advantage of more lenient payment terms under HMRC’s direct selling campaign.
Often referred to as agents, consultants, representatives or distributors, direct sellers are defined by HMRC as those ‘selling directly to customers and taking commission on sales without the need for a shop’. This includes home product demonstrators, those selling at a party or door-to-door salesmen.
As usual, the tax authority is giving these workers the option to come forward voluntary and settle any outstanding tax, or risk facing heavier fines when the campaign ends on 28 February 2013.
HMRC will be writing to known direct sellers to inform them about the campaign in the next month. After the 28 February deadline, HMRC will begin contacting those who did not come forward if they believe they owe any tax.
Direct sellers are often self-employed and are therefore responsible for calculating and paying their own tax.