One of DSG's senior tax consultants, Hillary Griffin gives advice on HMRC's latest crackdown on tax evasion

Piano teachers, fitness instructors and exam tutors could all be caught out in the latest tax evasion crackdown by HM Revenue & Customs.

Specialist teams of tax inspectors are currently investigating various trades and sectors where tax evasion, either deliberate or unintentional, is thought to be commonplace.

Under the latest HMRC initiative, anyone receiving fees for private tuition or coaching, such as music teachers or gym instructors, must notify HMRC that they have such income by January 6 and provide full details by March 31 2012.

HMRC investigators are using information held by agencies or other co-ordinators to identify those people who are receiving occasional payments but failing to declare them.

Hillary Griffin, senior tax consultant at DSG chartered accountants, said: “HMRC is under increasing financial and political pressure to recoup as much undeclared tax as possible and they are targeting certain groups where tax evasion is more prevalent.

“Anyone who provides tuition or coaching, even if it’s ad hoc work, and hasn’t declared that income is now firmly in the sights of HMRC.

“If you receive work through an agent, or you work occasional shifts at a gym, those organisations are legally required to keep records of all consultants. HMRC is cross-referencing those names against their own tax records to identify non-taxpayers.

“My advice would be to get your house in order sooner rather than later by declaring your income to HMRC before an investigator makes contact.”