Umbrella company contractors may be interested to learn that gas fitters, heating engineers and plumbers will shortly be receiving letters from HMRC informing them of the opportunity to put right their tax affairs.
The Revenue has devised a special limited time tax plan, the Plumbers’ Tax Safe Plan, to allow people working in these trades to correct any gaps in their tax history. Once the plan has expired, HMRC will start to clampdown on contractors who have not declared earnings and settled their tax liabilities.
Workers in the sector only have until the 31st of May to inform HMRC that they intend to take part. If they decide to come forward, they must make a full disclosure by the 31st of August and arrange to make payment. It is believed that the majority of contractors who take advantage of this amnesty will receive a low penalty charge of 10%. The maximum chargeable has been set at 20%.
People who fail to come forward within the time limits face investigation, substantial penalties and possible criminal prosecution.
The PTSP is the first initiative to focus on trades people and is designed to simplify the process of putting tax affairs in order.
HMRC is also giving providers of Employee Benefit Trusts a final opportunity to come clean before facing litigation. EBT’s were outlawed in the March Finance Bill but the Revenue has now decided to offer this final opportunity to reach a financial settlement in order to minimise costs to both itself and its customers.
HMRC’s permanent secretary of tax, Dave Hartnett, said this approach gives customers the chance to discuss their case with the Revenue and work with it to establish the ways their case fits within the proposals.
So far no deadline has been announced for this settlement opportunity but unlike other recent initiatives it does not offer a reduced penalty charge and interest will be levied as standard.
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Image: green on green with red by Darwin Bell
