March 2011 Supplementary Newsletter

March 2011 Supplementary Newsletter

News from the Revenue

HMRC offers the plumbing trade a tax amnesty scheme

As of March 1^st HMRC will allow plumbers and people in associated trades to declare their unpaid taxes for the past five years.

The Plumbers Tax Safe Plan (PTSP) is designed for people working within the plumbing industry who have not told HMRC about all their income in the past and who want to do so.

If you take advantage of PTSP, you could stop worrying about what happens if HMRC find out that you’ve not been telling them about all of your income. It’s a chance to start getting things right and know exactly what it’s going to cost to sort out things for the past. The will cover a six year period and is aided by data from the Gas Safe register as the HMRC does not hold any specific data about Plumbers. HMRC has stressed that it knows it is only a minority in the trade who do not fully declare their taxes.

If you intend to take part in the scheme you must:

• tell HMRC that you want to take part in the Scheme.
• tell HMRC about any and all income and tax that you’ve not previously declared.
• make an offer to pay what you owe, including penalties at the rates below.
• help HMRC as much as you can if they ask you for any more information. If you do not, they may not accept what you say in your disclosure.

The penalties will be:

• 10% for careless errors
• 20% for deliberate defaulters

There is guidance on the these penalties and how they will be applied.

Anyone thinking of entering the PTSP scheme should take note of these important dates:

• 1 March 2011 – the start of the Plumbers Tax Safe Plan.
• 31 May 2011 - the last day you can notify the HMRC of you intention to disclose.
• 31 August 2011 - your disclosure must reach HMRC by this date.

Last year the permanent secretary for tax Dave Hartnett told of the department's intention to extend the amnesty to other trades and professions beyond gas fitters. The way this is worded seems to offer that. There may be more trades targeted this way later on.

HMRC has provided a guide which outlines the amnesty terms.

If you would like to know more or ask specific questions Sue or Angela would be glad to help.