 HMRC started a new campaign on 14th February 2012 to clamp down on tradesmen who don’t have their tax affairs in order. Is this similar to the amnesty which was aimed at plumbers in July and August of last year? How will HMRC collate the information they need to identify tax-dodgers and why should tradesmen come forward under this new initiative? Answer. HMRC is set to launch various new campaigns throughout the coming year as it continues its drive to clamp down on those who attempt to dodge the taxman. Higher rate taxpayers and those failing to make tax returns will come under HMRC's spotlight. The tax authority will use new web technology to scour the internet for any liable information about specific targeted groups and businesses. HMRC have been targeting specific trades rather than applying a single amnesty to all professions as they believe that this receives wider media attention and encourages tax dodgers to come forward. A similar amnesty aimed at plumbers ran in July and August last year. The latest targeted group is electricians. HMRC is using new technology and information from online advertising, industry bodies, trade directories, professional ‘electrical safety’ certificates, trade suppliers and tax records to identify electricians who have not declared their full income. In addition to existing and ongoing campaigns that have targeted offshore investments, medical professionals and private tutors, HMRC will now focus on an extension of its plumber's campaign that will target traders - specifically builders and electricians - allowing them to come forward and declare unpaid tax. HMRC have also announced that they will continue their on-going drive to tackle missing tax returns and those who are liable to pay higher tax rates.
As usual, HMRC is giving these workers the option to come forward voluntary and settle any outstanding tax, or risk facing heavier fines when the campaign ends. Electricians who take advantage of this disclosure opportunity” will face a penalty of only 10 percent to 20 percent of the tax owed, in comparison to penalty rates of up to 100 percent which normally apply.
The campaign started on 14th February and is specifically aimed at individuals who install, maintain and test electrical systems, equipment and appliances under stringent safety regulations. Marian Wilson, of HMRC's Risk and Intelligence, said: "Using new technology, we have been able to analyse returns to HMRC covering a range of taxes and to cross-reference these with other information to build a picture of where we believe we have taxpayers with missing returns.”
"We are offering all the people targeted the opportunity to come forward. Penalties will be higher if we come and find people after the opportunity. A criminal investigation may also result. I therefore urge them to disclose unpaid tax voluntarily." People should notify their intention to take part in this campaign by 15 May 2012 and then have until 14 August 2012 to make a full disclosure. HMRC's clamp down coincides with an announcement made by the Treasury in early February who, in a joint statement with the Governments of the United States and some EU countries, will aim to combat cross-border tax evasion. The advice in this column is specific to the facts surrounding the questions posed. Neither FPM Accountants LLP nor the contributors accept any liability for any direct or indirect loss arising from any reliance placed on replies.
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