HM Revenue and Customs
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Tax authority pulls plug on electricians who don’t pay up
Electricians around the country will start receiving letters this month from HM Revenue & Customs (HMRC) warning them to pay any undisclosed taxes.
Under a special, time-limited tax opportunity, electricians can
pay the tax they owe, with lower penalties. Normally, up to 100
per cent of the tax owed can be charged to those who fall outside
of such opportunities.
The Electricians Tax Safe Plan is aimed at anyone who
installs, maintains and tests electrical systems, equipment and
appliances – and covers any tax owed, for whatever reason.
This includes people who make mistakes in the amount of tax
they pay – even though they have taken reasonable care; those who
are careless; or those who deliberately don’t tell HMRC about
something they should have paid tax on.
Marian Wilson, head of HMRC Campaigns, said:
”Our aim is to make it easy for electricians to contact us,
make a full disclosure of income and face a reduced penalty.
”We are using a variety of intelligence sources to target
electricians who have not declared their full income. This is the
same method we used for the plumbers’ campaign, and that
intelligence has led to 10 arrests and thousands of
investigations, so we know it works.
”The information we are getting is from a wide range of
sources, including online advertising, industry bodies, trade
directories, professional ‘electrical safety’ certificates, trade
suppliers and tax records. Using sophisticated software, this
detailed information enables us to target those who should come
forward and use the Electricians Tax Safe Plan.
”I urge tradespeople in this group who think they owe tax on
their income to get in touch and get their tax affairs in order,
simply and on the best terms.
”We do not think everyone who receives a letter owes us tax.
However, if you owe tax and don't get a letter, do not
assume that HMRC will not catch up with you.”
The letter, going out to more than 50,000 electricians,
explains that once the opportunity expires, HMRC will clamp down
on those in the sector who have failed to declare earnings and pay
the tax that they owe.
Under the Electricians Tax Safe Plan, electricians can come
forward at any time between 14 February and 15 May to tell HMRC
they want to take part. Once they come forward, they have until 14
August to make their disclosure and arrange for payment. If they
make a full disclosure, most face a penalty rate of only 10 per
cent, with a maximum of 20 per cent.
After 15 May, using information pulled together from
different data sources, HMRC will investigate those who have
failed to come forward. Substantial penalties or even criminal
prosecution could follow.
How do electricians let HMRC know that they intend to make a
tax disclosure?
From 14 February, online by completing a form at: www.hmrc.gov.uk/campaigns/notify.htm
Ring HMRC on 0845 601 5041
A dedicated team is available to give to information and advice.
The Electricians Tax Safe Plan is the second part of a
campaign aimed at tradespeople. The first targeted plumbers and
heating engineers.
Previous and current HMRC campaigns are: tutors and coaches;
the VAT initiative, aimed at people and businesses operating at or
above VAT threshold but who have not registered to pay; plumbers
and heating engineers; medical professionals; as well as offshore
campaigns aimed at those with undeclared offshore earnings.
Notes to editors 1. To come forward under the
Electricians Tax Safe Plan, electricians must notify HMRC by 15 May.
2. To let HMRC know of the intention to make a voluntary
disclosure electricians can:
use the form on HMRC’s website at: www.hmrc.gov.uk/campaigns/index.htm
call HMRC on 0845 601 5041 with details such as: name, address, National Insurance Number
3. Once this disclosure opportunity closes on 14 August,
taxpayers who have not come forward but are found to have unpaid
tax liabilities will face higher penalties, rising to 100 per cent
of the tax evaded or, potentially, criminal prosecution.
4. The terms being made available during this window are in
line with those HMRC offers for any full and accurate unprompted
voluntary disclosure of tax liabilities.
5. Further information on HMRC campaigns: www.hmrc.gov.uk/campaigns/news.htm
6. Follow HMRC on Twitter @HMRCgovuk
NAT20/12
Issued by HM Revenue & Customs Press Office Press enquiries only please contact:
Contacts:
HM Revenue & Customs Press Office
HMRC-Press-office.NDSmanagement@hmrc.gsi.gov.uk
Patrick O'Brien
Phone: 020 7147 2318
patrick.o'brien@hmrc.gsi.gov.uk
Andrew Bennett
Phone: 020 7147 0051
andrew.bennett3@hmrc.gsi.gov.uk
HMRC Out of Hours
Phone: 07860 359544
NDS.HMRC@coi.gsi.gov.uk
