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24/05/2011

Tradespeople Only A Week Left To Put Right Their Tax affairs

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.

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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."

(CD)

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