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ABDS Budget Coverage 2012 22/03/12
The Electricians Tax Safe Plan is aimed at anyone who installs, maintains and tests electrical systems, equipment and appliances – and covers any tax owed, for whatever reason.
Electricians around the country will start receiving letters this month from HM Revenue & Customs (HMRC) warning them to pay any undisclosed taxes. Under a special, time-limited tax opportunity, electricians can pay the tax they owe, with lower penalties.
This includes people who make mistakes in the amount of tax they pay – even though they have taken reasonable care; those who are careless; or those who deliberately don’t tell HMRC about something they should have paid tax on.
Normally, up to 100 per cent of the tax owed can be charged to those who fall outside of such opportunities.
The letter, going out to more than 50,000 electricians, explains that once the opportunity expires, HMRC will clamp down on those in the sector who have failed to declare earnings and pay the tax that they owe.
Under the Electricians Tax Safe Plan, electricians can come forward at any time between 14 February and 15 May to tell HMRC they want to take part. Once they come forward, they have until 14 August to make their disclosure and arrange for payment. If they make a full disclosure, most face a penalty rate of only 10 per cent, with a maximum of 20 per cent.
After 15 May, using information pulled together from different data sources, HMRC will investigate those who have failed to come forward. Substantial penalties or even criminal prosecution could follow.
Tonmoy Kumar, Manager of the Accounts Department of ABDS says:
“The Electricians Tax Safe Plan is the second part of a campaign aimed at tradespeople. The first targeted plumbers and heating engineers.”
Previous and current HMRC campaigns are: tutors and coaches; the VAT initiative, aimed at people and businesses operating at or above VAT threshold but who have not registered to pay; plumbers and heating engineers; medical professionals; as well as offshore campaigns aimed at those with undeclared offshore earnings.
If you need any help and advice with Corporate or Personal Tax returns, contact ABDS to discuss how we can help.
ABDS Chartered Certified Accountants of Southampton.
Tel: 023 8083 6900 E-mail: firstname.lastname@example.org