HMRC turn their attention to Colleges & Lecturers

HMRC has now issued Section 16 notices to colleges and education providers to request disclosure of all tutors and lecturers who are paid off the main payroll. It is without doubt time to consider if a disclosure under the Tax Catch Up Plan is worthwhile.

Section 16 notices force the recipient, in this case a college, to provide information to HMRC. In this instance they are using them to obtain the details of all private tutors and coaches that are being used by colleges. This is already causing concern with the colleges as they are being asked for three years information and will face penalties if they do not provide it within a specified period. There is an expectation that HMRC will inevitably raise status enquiries from this and again colleges may face penalties if they have not undertaken sufficient work to establish correct status.

Whilst Stage One is aimed at the education providers, there is inevitably a trawl of tutors and lecturers to follow which will no doubt identify unpaid tax and National Insurance.

Our View:
If you are a lecturer or tutor working in a college and being treated as Self Employed or you are a session lecturer working restricted hours but not paying tax through the payroll then now is the time to consider disclosure to HMRC before they knock on the door. Seek advice early.