Last month, we wrote about the Electricians Tax Safety Paln (ETSP) that would be launched in February 2012.
HMRC have now announced that along with electricians other trades in the construction industry will be targetted too. These will include builders, roofers, window fitters, bricklayers, carpenters and joiners.
The campaigns will initially concentrate on those who do not complete tax returns, using new technology to analyse information in tax returns and cross-reference this with information on the Internet to help it track down tax cheats.
Like the previous campaigns aimed at plumbers (PTSP) and the medical profession, the idea is for those not paying the correct tax (or tax at all), are given the opportunity to “cleanse their souls” by volunteering to get their accounts and tax in order before they are “found out”.
“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 will use the same technology to analyse information gathered to support the following two campaigns and for each campaign, after the opportunity has closed, we will use the information we have to pursue those who choose not to use the chances we provide to put their affairs in order.
“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.”
We from an accountant or tax adviser before making a declaration. This way the bill for tax, interest and penalties can be kept to a minimum.
Bettertax are tradesmen’s tax refund specialists and our advice is always free. If you are at all concerned with this latest HMRC development, give us a call.