HM Revenue and Customs
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Plumbers have one week to repair leaks
Plumbers, gas fitters and heating engineers have only a week left to register for a special tax plan to put right their tax affairs.
Once the chance to register expires on 31 May, HM Revenue & Customs (HMRC) will use the information held on people working in the plumbing industry to begin an immediate clampdown on those who have chosen not to come forward and take advantage of the Plumbers Tax Safe Plan (PTSP).
Under the PTSP, plumbers, gas fitters, heating engineers and members of associated trades who owe tax that they have not yet declared have until 31 May to come forward and tell HMRC under favourable terms. If they fully disclose tax arrears, most face a penalty rate of only 10 per cent, with a maximum of 20 per cent. They have until 31 August to arrange for payment.
From 1 June, HMRC will begin using information gathered from many different sources to open investigations into those who have failed to come forward. Substantial penalties or even criminal prosecution could follow.
The PTSP is the first initiative in a campaign aimed at tradespeople.
Mike Wells, HMRC's Director of Risk and Intelligence, said:
“If you owe tax but haven’t yet heard from HMRC, do not assume that we will not catch up with you.
“Plumbers, gas fitters and heating engineers whose tax affairs are not in order need to contact HMRC now and fully disclose their income. This will allow them to take advantage of a reduced penalty.
“We are determined to ensure everyone pays their fair share and will begin using a variety of intelligence sources to target plumbers who have not declared their full income as soon as the chance to register for the scheme has passed.”
To join the tax plan people in the plumbing industry must:
Register with HMRC to “notify” that they plan to make a voluntary tax disclosure by 31 May;Tell HMRC about tax due and make arrangements to pay any tax interest and penalties due before 31 August. This is called “making a disclosure”.
How do plumbers let HMRC know that they intend to make a tax disclosure?
Online at www.hmrc.gov.uk/plumberstaxsafeplan;Ring HMRC on 0845 600 4507.
A dedicated team is available to give information and advice.
The benefit of the Plumbers Tax Safe Plan is that those who make a full disclosure:
Will be offered a simple and straightforward way to put their tax affairs right; andWill be charged a low penalty rate - 10 per cent for most who sign up, with a maximum rate of 20 per cent.
Notes to Editors
1. To come forward under the Plumbers Tax Safe Plan, a notification must be made to HMRC by 31 May 2011.
2. To let HMRC know of the intention to make a voluntary disclosure a plumber can:
· use the e-form link on HMRC’s website at: www.hmrc.gov.uk/plumberstaxsafeplan
· call HMRC on 0845 600 4507 with details such as: name,
address, National Insurance Number.
3. Once this disclosure opportunity closes on 31 August 2011, 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 the prospect of criminal prosecution.
4. HMRC has used legal notices and new technology to gather and analyse data from industry bodies, tax records, advertising directories and Health and Safety prosecutions. This detailed information will be used to contact and then pursue people who should come forward and use the PTSP. Anyone HMRC catches up with who could have used the PTSP is likely to face greater costs than if they came forward voluntarily, as well as running the risk of prosecution.
5. 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.
6. The following companies and organisations have been consulted by HMRC on the Plumbers Tax Safe Plan: Low Income Tax Reform Group, Tax Aid, the Citizens Advice Bureau, as well as accountancy representative bodies.
7. Summary information on existing and future campaigns is available on the HMRC website at www.hmrc.gov.uk/hmrccampaigns
8. Follow HMRC on Twitter @HMRCgovuk.
Contacts:
HM Revenue & Customs Press Office
HMRC-Press-office.NDSmanagement@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
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