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Plumbing is the focus of HMRC’s new tax ‘amnesty’, as the department continues its drive to stamp out evasion.
The initiative follows the tax health plan (THP), which was launched last year as an opportunity for doctors and dentists to reveal details of unpaid tax liabilities at the reduced cost of a 10% penalty.
Under the latest scheme, plumbers, gas-fitters, heating engineers and members of associated trades with undisclosed taxable income from the past five years have until 31 May to register their intention to make a voluntary disclosure.
Participants will then have until 31 August to provide their details and make arrangements for payment. The maximum sanction will be 20% of liabilities, but the Revenue says individuals will be penalised at just 10% if a return has been submitted showing less tax payable than the correct amount because the taxpayer had been merely careless, or if a person started trading without informing HMRC or submitting a tax return but had not deliberately tried to hide the information.
The plumbers’ tax safe plan (PTSP) – which was set up by the Revenue in partnership with the Low Income Tax Reform Group, Tax Aid and the Citizens Advice Bureau – is intended to be the first of several disclosure initiatives targeting trades people. The terms are in line with those offered by the taxman for any full and accurate, unprompted, voluntary disclosure of liabilities.
Once the PTSP window closes in the summer, individuals who have not come forward but are found to have unpaid liabilities will face higher penalties of 30% to 100% of the tax evaded.
Trades people who wish to submit a declaration of intention should so by completing an online notification form or call the dedicated PTSP team on 0845 600 4507.
