H M Revenue & Customs (HMRC) has recently announced that teachers will be the next
sector to come under scrutiny in its continuing efforts to raise additional tax revenues. This
follows similar actions against other trades and professions in recent years which have
resulted in significant success for HMRC and, in several extreme cases, criminal prosecution
for tax evasion.
It is well known that many teachers, like other professions, can earn additional income by
offering private lessons.
A teacher’s tax affairs can be complex. Sometimes teachers’ tax returns are not always
correctly dealt with which can mean that income is not properly declared and tax is underpaid.
It doesn’t matter what you teach, or whether you teach full or part time. If you do not declare
all of your income, you are at risk.
If advice and assistance is sought from a suitably qualified and experienced tax professional, it
can be the case that full disclosure (and peace of mind) has minimal financial impact.
HMRC have stated that it will be commencing investigation work from 1 April 2012. In the
meantime, it is offering an amnesty to all teaching professionals. If you are affected, you
should take advantage of this amnesty to bring your tax affairs up to date. The amnesty,
which lasts until 31 March 2012, offers a maximum penalty of 20% of any tax due, compared
to the standard maximum penalty of 100% which will apply once the amnesty ends.
It is essential to bear in mind that penalties can arise even if non-disclosure is innocent.
If you are a teacher and you want to get your tax in order, you should do so now!
For a confidential free one hour initial consultation, call 01227 811745 or email us at
Ackland Webb is an independent firm of
“full service” accountants, based at the
Innovation Centre at Canterbury.
We deal with a wide range of personal
and business clients, providing
accountancy, tax, payroll, VAT and
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includes advisory roles to charities,
forensic accountancy and dealing with
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Our principal, David Muggridge, has
over 20 years’ experience as an
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professionals, and owner managed
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