HM Revenue & Customs have announced that Plumbers, gas fitters and heating engineers are the latest targets on their clampdown on trades’ people failing to declare their earnings and pay tax.
The tax authorities have pulled together information from various sources including Gas Safe and Corgi registers to build up a database to help it identify people who may be under-declaring their earnings.
Under the terms of the amnesty, plumbers, gas fitters, heating engineers and members of associated trades who believe they have underpaid tax have until 31 May 2011 to notify HM Revenue & Customs that they intend to make a disclosure of what they owe. They then have until 31 August 2011 to make sure they have made the disclosure and arranged for any outstanding tax to be paid.
Crucially those who make full disclosure will face a lower penalty rate of 10% (with the potential of a maximum penalty of 20%). Those who fail to come forward with face considerably higher penalties or even criminal prosecution.
If you would like help, or know someone who would like help, in dealing with HM Revenue & Customs in making a disclosure before 31 May 2011 please give us a call on 01733 371180.
Carolyn Wittke, CTA, GreenStones Limited Accountants, 01733 371180.