Freelancers can run but they can’t hide, at least not from HMRC!

The Revenue began its battle against tax evaders by offering an Offshore Disclosure Facility back in 2007. It then started to target individual professions where it felt the risk of evasion was high.

In 2010, more than 1,500 medics took advantage of the Tax Health Plan. HMRC netted over £10 million from this initiative, including a payment of more than £1 million from a doctor. The Revenue then moved on to target self-employed individuals in the plumbing industry; a move that saw at least £2 million stream into the Revenue's coffers.

People providing private tuition and coaching were next on the list. Tutors and coaches were given until the 6th of January this year to notify their intent to make a voluntary disclosure under the Tax Catch Up Plan.

This month, the Revenue shifts its attention to electricians and a campaign is already planned to start this Spring targeting people who buy and sell through e-marketplaces such as e-Bay.

HMRC announced earlier this month that people in the construction industry, and those that carry out direct doorstep selling, are to be the latest targets in the war against tax evasion.

It makes sense for freelancers who have not been 100% honest with the Revenue to take advantage of these disclosure facilities. HMRC now has the technology to track down defaulters and the penalties for tax evaders are high.

The Government is determined to stamp out tax evasion and has been busy signing agreements with European nations that are happy to disclose information about UK citizens with offshore bank accounts. With the Revenue increasingly spreading its net to capture those in the traditional self-employed professions, freelancers might try and run, but they can't hide from HMRC.

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