Following on from recent disclosure opportunities, such as the Plumbers Tax Safe Plan (PTSP), the Tax Health Plan (THP) for medical professionals, and the Tax Catch Up Plan (TCP) for coaches and tutors, HM Revenue and Customs (HMRC) has announced another Trades Campaign; the Electricians Tax Safe Plan (ETSP).
Over the past two years HMRC has increasingly focused its compliance activities on those trades and professions where it believes there is the greatest risk of tax being evaded. The campaigns have offered non-compliant taxpayers the opportunity to come forward and make a disclosure in return for being charged a reduced penalty. The experience of these campaigns so far suggests that HMRC is only offering a disclosure facility to trades and professions for which it has obtained a significant amount of information about the non-compliance of certain taxpayers.
We have seen HMRC act quickly upon the information it holds where taxpayers have failed to come forward. Following the closure of the PTSP in August 2011, HMRC arrested five plumbers and launched 600 civil investigations. In the civil investigations, where tax is found to be carelessly or deliberately underpaid, the penalties are set to be far higher.
The current campaign targets people who install, maintain or test electrical systems, equipment or appliances under stringent safety regulation. Please read the details of the current campaign.
HMRC expects people who have failed to declare some or all of their income to come forward and make good the loss. Those who do come forward will receive assurity on the number of years that they are expected to review, and the amount of penalty that they will pay. Those who do not come forward and are subject to an enquiry will face higher penalties where tax has been carelessly or deliberately understated. HMRC has set a deadline of 15 May 2012 for people to come forward and notify HMRC that they intend to make a disclosure.
HMRC has also announced that the 'E-marketplace' campaign will commence on 14 March 2012 and will look into those using online auction websites to buy and sell a large volume of goods without declaring their profits for tax purposes. Further information will be released by HMRC in the coming weeks.
If you have any concerns about these campaigns call 0845 868 2050.
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