HMRC Targeting Electricians who fail to pay up

Electricians will soon be warned by HM Revenue & Customs (HMRC) that they should pay any undisclosed taxes.

The campaign is aimed at anyone who installs or maintains or tests electrical systems, equipment and appliances and covers any unpaid tax - whether you made an error despite taking reasonable care, whether you were careless, or whether it was something you did deliberately.

This new plan will be known as the Electricians Tax Safe Plan. Electricians have until 15th May 2012 to make HMRC aware that they wish to take part in the plan. Once HMRC are aware that you wish to take part, you have until August 14th 2012 to make your disclosure and make arrangements to pay the tax that you owe.

By making a full disclosure of earnings, the penalty rate will be just 10% with a maximum of 20%.

Once this opportunity expires on the 14th August 2012, HMRC will be targeting Electricians who have failed to respond and pay up. After that date, using information pulled together from many different data sources, HMRC will investigate those who have failed to respond. Electricians who have not come forward but are found to have unpaid tax liabilities will face higher penalties, rising to 100 per cent of the tax evaded or, potentially, criminal prosecution.

The Electricians Tax Safe Plan is the second part of a campaign aimed at tradespeople. The first push was aimed at plumbers and heating engineers.

Marian Wilson Head of HMRC Campaigns, said:
“Our aim is to make it easy for electricians and others in the electrical industry to contact us, make a full disclosure of income and face a reduced penalty.

“We are using a variety of intelligence sources to discover and target electricians who have not declared their full income.

“We obtain information from a wide range of sources, including from online advertising, industry bodies, trade directories, part P certificates, trade suppliers and tax records. Using sophisticated software, this detailed information enables us to target those who should come forward and use the Electricians Tax Safe Plan.
“I urge trades people in this group who think they owe tax on their income to get in touch and get their tax affairs in order, simply and on the best terms.

“We do not think everyone who receives a letter owes us tax. However, if you owe tax and don't get a letter, do not assume that HMRC will not catch up with you.”

How Should I Notify HMRC that I intend to make a tax disclosure?

* From 14 February, online by completing a notification form at www.hmrc.gov.uk/campaigns/index.htm
* Ring HMRC on 0845 601 5041. A dedicated team is available to give to information and advice.

Those that make a full tax disclosure will be offered a simple and straight forward way to put their tax affairs in order and will be charged a low penalty rate of 10% for most who sign up with a maximum of 20%.

To follow the latest updates as they happen and for further information, please visit - http://www.hmrc.gov.uk/ris/hmrc-campaigns.htm