WIREDGOV

Plumbing profession told to tighten up tax affairs

News Release issued by the COI News Distribution Service on 01 March 2011

Plumbers, gas fitters and heating engineers are being targeted by the tax authorities in a clampdown on tradespeople failing to declare their earnings and pay tax.

Under the tax plan, plumbers, gas fitters, heating engineers and members of associated trades who have tax to pay which they have not yet told HM Revenue & Customs (HMRC) about can come forward by 31 May to tell the department of their intention to disclose what they owe. If they make a full disclosure, most face a low penalty rate of 10 per cent, with a maximum of 20 per cent. They have until August 31 to make their disclosure and arrange for payment to be made.

After that date, using information pulled together from various sources, HMRC will carry out targeted investigations aimed at those who have failed to come forward and make a full declaration. Substantial penalties or even criminal prosecution could follow.

The plumbers’ tax safe plan (PTSP) is the first initiative in a campaign focused on tradespeople. It is designed to make it easy for those in the plumbing industry to put their tax affairs right - and keep them that way.

Mike Wells, HMRC's Director of Risk and Intelligence, said:

“Our aim is to make it as easy as possible for plumbers to come forward, make a full disclosure and benefit from a reduced penalty.

“We will be using various intelligence sources to target plumbers who have not declared their full income. I strongly urge any in this group who think they may owe tax on their income to get in touch with HMRC and get their tax affairs in order simply and on the best available terms.

“This is the first step in enabling those with undisclosed income or gains to avoid a full tax investigation with much higher penalties. The message is clear: contact us before we contact you.”

The tax plan operates in two stages:

* From 1 March to 31 May, plumbers can register with HMRC to “notify” that they plan to make a voluntary tax disclosure.
* By 31 August, those who have registered must have told HMRC about tax due and have made arrangements to pay any tax interest and penalties due. This is called “making a disclosure”.

How do plumbers let HMRC know that they intend to make a tax disclosure?

* Online by completing a notification form at www.hmrc.gov.uk/plumberstaxsafeplan
* Ring HMRC on 0845 600 4507

A dedicated team will be on hand to help.

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; and
* Will 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 window closes on 31 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.
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. If plumbers and heating engineers notify HMRC before 31 May, HMRC will only go back five years on their records.
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.
7. Follow HMRC on Twitter at: @HMRCgovuk.

Issued by HM Revenue & Customs Press Office Press enquiries only please contact:

Contacts:

HMRC Out of Hours
Phone: 07860 359544
NDS.HMRC@coi.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