Plumbers Tax Safe Plan

As you may have heard, HMRC are taking a very in-depth look at plumbers, gas installers and heating engineers.

Gas Safe and other organisations have received legal requests to hand over the information they hold on members and it is clear that this is a concerted effort by HMRC to uncover any unpaid tax. Whether we like it or not, this is not going to go away. One thing you can say about this Plumbers Tax Safe Plan or PTSP - is that if you have done some work and not paid tax on it there is unlikely to be a better chance to put that right. HMRC advise that during this limited opportunity you will be able to tell them about any untaxed income and in return:

• you can tell them how much penalty you should pay; and
• if you can't afford to pay what you owe in one lump sum, don't worry. If your circumstances warrant it, you will be able to spread payments; and
• most people will only have to pay HMRC for up to 6 tax years. If you have simply made a careless mistake you only pay for a maximum of 6 years - no matter how many years you're behind with your tax affairs

Otherwise, they are going to use the information they have put together and their trace technology to check the records of those working and registered with us. The work has already started and once the PTSP finishes they'll start the follow up work.

"This is something new from HMRC because previously it was difficult for us to manually try and track down and cross reference records like accounts at suppliers; registrations with professional bodies; local authority records of certified work; advertising locally and nationally as well as tax returns". Says Marian Wilson, Campaign Director " now we have the technology to do this it makes identifying who's trading and how much they are doing and who for much, much easier."

HMRC have said they believe many of those in the industry are probably paying the right amount, but equally the early results of their research have shown there is a minority who are not.  

"Other campaigns have looked at people with Offshore bank accounts and doctors, but this kind of technology works on all industries, not just those with lots of computer records."

If you haven't had a look at HMRC's website then its worth visiting to consider whether or not this applies to you or give them a call on 0845 600 4507. HMRC have been very clear - if they find people after PTSP closes they will look to prosecute whenever they can and will definitely charge higher penalties.

You may have seen billboard posters or heard their advert on local radio - if in doubt call or go on line and get some help or more information. For more information visit their web pages at:

www.hmrc.gov.uk/plumberstaxsafeplan/