It has been announced that in February 2012, HMRC are introducing the Electrician's Tax Safe Plan.
Targeting electricians and electrical fitters, the campaign is encouraging electricians to come clean about their tax, with interest and penalties
for those who fail to do so.
As well as qualified electricians, HMRC regards an “electrician” to be anyone who installs, maintains, tests, or repairs electrical equipment, systems or appliances. In reality this means anyone who is connected to the electrical industry, including one man bands and electrical contractors of any size.
Plumbers have previously been the subject of a Tax Safe Plan (which ended on 31st May 2011). To date, £1.98million has been agreed and paid, whilst HMRC has arrested nine plumbers covering the areas of Yorkshire, Kent, Cambridgeshire, Tyne and Wear, Midlands and South Wales, with nearly a thousand cases prepared or under way.
This might sound like scaremongering, but HMRC takes advantage of tracing technology as well as intelligence from sources. And, in addition to unpaid tax and interest, those discovered could potentially face penalties of up to 100 per cent.
Tax Returns Direct founder Sean Davern says
"If you work in the electrical game, whether you are a qualified electrician, electrician's mate, electrical fitter, electrical tester …or even an electrical contractor...now is the time to sort any issues you have with the Taxman.
It's important to remember that HMRC is now responsible for not only income tax, but also VAT, and National Insurance.
Don't bury your head in the sand any longer. They will get you in the end. The Taxman has sources of information everywhere - a few surprising ones as well. The worry of looking over your shoulder is always worse than the reality. One word of warning - whatever you do - get help. Do not attempt to deal with this yourself. That would be the same as me trying to rewire my own house!”
“They targeted plumbers last year - if you know any plumbers that owned up why not ask them about their experience. No one likes having to pay tax - but if you spend years looking over your shoulder, and then have to pay it in the end with big penalties, what is the point? If you come forward the taxman will almost certainly view you sympathetically if it is handled in the right way.”
First Steps
• Dig out records of all CIS payments, PAYE info (P45, P60 and P11D), benefits letters and details of any other payments
• Find all your bank statements and get copies if you do not have originals
• Gather together all your receipts and invoices
• Make a list of anything missing
• Get help from a suitably experienced tax adviser – DO NOT just walk into the tax office yourself. Let your adviser deal with the Taxman on your behalf.
Using tried and tested IT systems and technology, Tax Returns Direct guarantees that your tax return is HMRC compliant. A dedicated team works on getting tax returns done and into the HMRC often within days, saving clients hours of stressful pouring over figures to get them right.
Prices are fixed in writing and given in advance, and Tax Returns Direct operates a no quibble guarantee.