HMRC launches its latest campaign to tackle undeclared tax
HMRC has launched its latest campaign and disclosure opportunity. The Electricians’ Tax Safe Plan (ETSP) is aimed at anyone who installs, maintains and tests electrical systems, equipment and appliances.
Campaigns are designed to tackle tax evasion by encouraging people with undeclared tax to bring their affairs up to date. Each campaign focuses on a particular group, eg a trade sector or people with money in offshore accounts. Those who come forward and make a full disclosure can make a settlement on favourable terms – those who don’t come forward can expect tough compliance action from HMRC.
The ETSP is the first of HMRC’s campaigns to be launched this year. It has others in the pipeline, as detailed in our news item last week HMRC announces plans for future campaigns to target tax evasion
Under the ETSP, electricians can come forward at any time between 14 February and 15 May 2012 (inclusive) to notify HMRC they want to take part. They then have until 14 August 2012 to make their disclosure and arrange for payment. If they make a full disclosure, most face a penalty rate of only 10%, with a maximum of 20%.
HMRC is writing to more than 50,000 electricians around the country, telling them about the campaign and warning that once the opportunity expires, HMRC will clamp down on those who have failed to declare earnings and pay the tax they owe. HMRC has gathered information from various sources to enable it to identify people whom it thinks should use the disclosure opportunity. Of course, not everyone who receives a letter will necessarily have any undeclared tax arrears.
If you feel that this may affect you then please contact us for a confidential discussion.