Many people in the UK supplement their PAYE income by direct selling. Direct selling can be catalogue distribution or door to door sales for example. If you have income from direct selling you essentially have self employed income, which legally should be declared on a self assessment tax return at the end of each tax year. HMRC are aware that many people with direct selling income are not declaring their income and are now being targeted.
HMRC have set up a direct selling campaign to allow people to come forward and declare their income. HMRC has produced a form to complete – you can call HMRC on 0845 602 3353 for further help.
If you do not declare your direct selling income you are not meeting your legal obligations, and face substantial fines and late penalties. If you come forward and you owe tax you can come to an arrangement with HMRC through the direct selling campaign and could avoid in some cases any late penalties and fines.
If you have already registered for self assessment because of your direct selling income you should make sure that your tax return is submitted on time.