Plumbers offered tax amnesty

Thames Valley accountants and business advisers James Cowper is warning plumbers and associated trades to take notice of a new tax disclosure agreement which is being set up by HM Revenue & Customs and requires registration by 31 May 2011.

Mark Herson, Private Client Tax Director at James Cowper comments: “HMRC is targeting industries where cash transactions are high. This scheme – the plumbers' tax safe plan (PTSF) agreement - allows people in the profession and also the associated trades, such as heating engineers and gas installers, to declare their unpaid taxes for the past five years. The penalties will be 10% for careless errors and 20% for deliberate defaulters.”

“Trades people have until 31 May this year to notify HMRC of their intentions to register for the scheme, and they will have to make arrangements to pay them off by 31 August.”

Mark adds: “It is believed HMRC will be using data obtained from the Gas Safe and Corgi registers to target plumbers who have not made a full tax declaration or have failed to come forward during this amnesty. HMRC has access to new technology to gather and analyse data from industry bodies, tax records, advertising directories and Health & Safety Prosecutions and this information will be used to contact and then pursue people who should come forward and use the PTSP.”

Mark Herson concludes: “Anyone in the plumbing or associated trade should seek advice further advice on registering for the scheme.”

A hotline has been set up from today until 31 May for enquiries about the scheme on 0845 600 4507. You can also find information at www.hmrc.gov.uk/plumberstaxsafeplan

Mark Herson, Director, James Cowper LLP, Tel +44 (0)1865 200500 or email mherson@jamescowper.co.uk

08.03.11